Clayton, Dubilier & Rice reached a deal to purchase a majority stake in fluid power products seller SunSource Holdings. The deal will expand the private equity firm's presence in the fragmented distribution sector.

Addison, Illinois-based SunSource distributes pumps, motors, valves and cylinders for manufacturers in the construction, transportation and energy sectors. The target also provides repair services. SunSource sells more than 150 thousand products to about 300 manufacturers under the Activation, Air-Draulics, Air-Dreco, Callahan Weber, DJ Industrial, Fauver, Fluid Power Tech, Fluid Process Equipment and Ford-Gelatt brands.

"We see a lot of runway ahead for our business." says SunSource CEO David Sacher. Financial terms of the deal were not disclosed.

CD&R is a New York-based private equity that focuses on the consumer, business services and healthcare sectors. In 2017, the private equity firm agreed to buy a majority stake in business consulting firm Capco from Fidelity National Information Services Inc. (NYSE: FIS) for $477 million.

Debevoise & Plimpton LLP is representing CD&R, which has received financing from Barclays, Credit Suisse Securities (USA) LLC, and Deutsche Bank.

SunSource
SunSource

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Demitri Diakantonis

Demitri Diakantonis

Demitri Diakantonis joined SourceMedia in 2015 and serves as Assistant Managing Editor of Mergers & Acquisitions and writes The Buyside column about corporate dealmaking, and also covers the consumer sector.