Focus Financial Agrees to $7B Take-Private Deal by Clayton, Dubilier & Rice

Focus Financial Partners Inc, a partnership of independent wealth management firms, has agreed to be acquired by affiliates of private equity firm Clayton, Dubilier & Rice (CD&R) in an all-cash transaction that gives the company a roughly $7 billion valuation.

Focus’ shareholders will receive $53 in cash per share, representing an approximately 36% premium to its 60-day volume weighted average price as of the close on February 1, 2023. Focus had received a buyout proposal from CD&R a day later that sent shares to their highest level in nearly a year.

Funds managed by Stone Point have agreed to retain a portion of their investment in New York-based Focus and provide new equity financing as part of the transaction.

“This transaction represents an important evolution in the resources we will have to invest, enabling us to increase the value we deliver to our partners and their clients,” said Rudy Adolf, Founder, CEO, and Chairman of Focus.

Stone Point and KKR took Focus public in 2018; KKR has since exited its investment.

The deal is expected to close in the third quarter, and Focus will cease to be a publicly traded company when the takeover is completed. The agreement provides for a 40-day “go-shop” period that expires April 8, which allows Focus to solicit alternative proposals.