Sun Capital Partners Inc had invested in the struggling toilet maker operating under the American Standard brand. Now, the buyout firm stands to double the amount of its invested as the company it had bought went on a turnaround.
According to an anonymous source, Sun Capital and Bain Capital LLC would be paid out US$340 million to Japanese buyer Lixil Corp. The sale excludes the US$200 million of debt the company has indicated in its balance sheet. The payout is twice the original amount that the private equity firms invested in the toilet maker.
The transaction involves Sun Capital's sale of the parent company of American Standard. American Standard manufactures bath and kitchen products for a record amount of US$542 million to LIXIL Corp, a building products company based out of Tokyo.
Sun Capital's management team comprised of Rodger Krouse and Marc Leder, which manages a portfolio worth US$45 billion. Their business is purchasing underperforming companies and buying distressed assets.
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