Private equity firm Clayton Dubilier & Rice is buying a majority stake in a unit of Deere & Co. (NYSE: DE) for $465 million.

CD&R is picking up John Deere Landscapes, which distributes landscaping products primarily to contractors for residential and commercial use. Products include wholesale irrigation, landscape lighting, nursery and turf and maintenance supplies.

Deere will retain a 40 percent stake in the unit.

“The new company should benefit from a recovery in residential and commercial construction activity as well as through the meaningful value creation opportunities available to drive the business forward,” says CD&R partner Ken Giuriceo.

CD&R, founded in 1978, has managed the investment of more than $18 billion. In September the firm bought Brand Energy & Infrastructure Services Inc. to combine the company into a joint venture with Harsco Corp.’s (NYSE: HSC) infrastructure division. In August, CD&R portfolio company Roofing Supply Group LLC picked up Supreme Metal Products and Exterior Building Supply. Also in August, the firm bought 60 percent of Hussmann International

UBS Loan Finance LLC, ING Capital LLC, HSBC Securities (USA) Inc. and Natixis. Debevoise & Plimpton LLP acted as CD&R’s legal counsel in connection with the deal.

Other companies are also looking to bet on the housing recovery. In September, Louisiana-Pacific Corp. (NYSE: LPX) bought Ainsworth Lumber Co. Ltd., which makes building products, for $1.1 billion. In August, funds advised by Ares Management and the Ontario Teachers’ Pension Plan announced a deal for CPG International Inc., which makes building materials. 

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