BDT Capital Partners to Take Grill Maker Weber Private for $2.3B
Weber Inc., the widely known grill maker, will be taken private again by investment firm BDT Capital Partners, the firm that took the company public in August 2021, for $8.05 per share, implying a $3.7bn enterprise value.
The transaction is expected to close in the first half of 2023.
The Palatine, Illinois-based company will also receive a $350mn unsecured loan facility, which will be used for general corporate purposes, including repaying existing debt.
The $8.05 offer price is a 60% premium to the stock’s value on October 24, when rumors of a buyout first emerged, but still 40% below the IPO price of $14 per share.
The move comes about four months after Weber reported a 21% drop in sales and said it planned a 10% reduction of its global workforce as part of a larger cost-management strategy.
Weber’s tenure in the public markets has been underwhelming. It had an underwhelming public debut, first cutting the size of its proposed stock offering by more than half then pricing it below the expected market range. Weber sold 18 million shares for $14, raising about $250 million. It had originally hoped to sell nearly 47 million shares between $15 and $17.
Centerview Partners LLC is serving as exclusive financial advisor to the Special Committee and Sullivan & Cromwell LLP is serving as the Special Committee’s outside legal advisor.
Davis Polk & Wardwell LLP is acting as legal counsel to Weber. Cravath, Swaine & Moore LLP is acting as legal counsel to BDT.
