Roper Technologies Divests Majority Stake In Its Industrial Businesses

Roper Technologies Inc ROP has agreed to sell a majority stake in its industrial businesses to affiliates of Clayton, Dubilier & Rice, LLC (CD&R) for cash proceeds of ~$2.6 billion while retaining a 49% minority interest in a new standalone entity.
The following businesses are involved in the transaction: Alpha, AMOT, CCC, Cornell, Dynisco, FTI, Hansen, Hardy, Logitech, Metrix, PAC, Roper Pump, Struers, Technolog, Uson, and Viatran. In FY21, these firms generated $940 million in revenue and $260 million in EBITDA.
"This is the final step in Roper's divestiture strategy to reduce the cyclicality and asset intensity of our enterprise," said CEO Neil Hunn.
"The after-tax proceeds from this transaction will expand Roper's M&A firepower to more than $7 billion, which will be targeted toward our large pipeline of high-quality acquisition opportunities," Hun added.
Beginning 2Q22, Roper plans to report the results of these businesses as discontinued operations. It expects this transaction to close by the end of 2022.
Price Action: ROP shares are trading lower by 1.64% at $435.20 on the last check Wednesday.