FOCS - Focus Financial agrees to $7B buyout by Clayton Dubilier & Rice

Buyout firm Clayton, Dubilier & Rice ((CD&R)) on Monday agreed to acquire Focus Financial Partners ( NASDAQ: FOCS ) in an all-cash transaction with an enterprise value of more than $7B.

The proposed transaction will pay Focus ( FOCS ) shareholder $53 in cash per share, the same price as it offered in a non-binding proposal on Feb. 1. Under the definitive agreement, funds managed by Stone Point Capital LLC agreed to retain a portion of its investment in Focus and to provide new equity financing.

"This transaction results from a robust process conducted by a special committee of all the independent directors of Focus ( FOCS ) that included a pre-announcement market check and provides for a 40-day go-shop provision, to help ensure value maximization for public stockholders," said George LeMieux, chairman of the special committee.

The "go-shop" period expires at 11:59 PM ET, April 8, 2023, allowing the special committee and its advisers to solicit and consider alternative acquisition proposals from other parties. CD&R and Stone Point plan to finance the acquisition with fully committed equity financing that isn't subject to any financing condition.

The transaction is expected to close in Q3 2023.

The proposed transaction required approval by holders of a majority in the voting power of the outstanding shares of common stock held by Focus's ( FOCS ) disinterested stockholders.

Earlier in February, Raymond James downgraded Focus ( FOCS ) to Market Perform as competing bids were unlikely

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