BY Richard Summerfield
Grill manufacturer Weber Inc. has agreed to be taken private by BDT Capital Partners in a $3.7bn deal.
BDT, Weber’s controlling shareholder with a 48.2 percent stake in the company, has agreed to buy all of the outstanding shares in Weber that it does not already own for $8.05 per share. The purchase price represents a 60 percent premium to Weber’s closing price on 24 October, the last trading day before BDT submitted its takeover offer.
Upon completion of the transaction, Weber will become a privately held company majority owned by investment funds managed by BDT. The deal is expected to close in the first half of 2023, subject to customary closing conditions. The transaction has been approved by the written consent of the holders of the requisite number of shares of common stock of Weber, such that no additional stockholder approval is required.
In connection with the transaction, BDT managed investment funds will provide Weber with an additional unsecured loan facility in the aggregate principal amount of $350m. Weber intends to use the loan to repay existing debt and fund working capital for the 2023 outdoor cooking season. The previous $60m loan agreement that Weber entered into with BDT managed investment funds on 8 November 2022, will remain outstanding, the companies confirmed in a statement.
“We appreciate the Special Committee’s comprehensive evaluation of BDT’s offer and are confident that this transaction provides immediate and fair value to Weber minority shareholders,” said Alan Matula, interim chief executive of Weber. “For over a decade, BDT has been a longstanding strategic partner for Weber. With their continued support, our global team will move forward in executing our long-term strategy with consumers and customers as our top priorities. And we’ll continue to sharpen our focus on doing what we do best: delivering the outdoor cooking industry's most innovative, best-performing, highest-quality products and engaging millions worldwide who love to gather together and cook outside.”
“Weber is the #1 brand and global category leader in outdoor cooking, and it has demonstrated a relentless commitment to quality and innovation over its 70-year history,” said Kelly Rainko, a partner at BDT and non-executive chair of the board of Weber. “We look forward to continuing our partnership with the company and the founding Stephen family in its next chapter.”
News: Grill maker Weber to go private with BDT Capital in $3.7 bln deal