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Clayton, Dubilier and Rice, a private equity firm, is considering a $4.1 billion offer to acquire investment adviser Focus Financial Partners Inc. (NASDAQ:FOCS), it was revealed on Thursday.
Focus Financial said it has entered into an exclusivity agreement for a limited period with Clayton, Dubilier & Rice to negotiate the terms surrounding a potential $53 per share cash offer.
FOCS shares are up more than 9% on the news.
“A Special Committee of the Board of Directors of Focus (the “Special Committee”) was formed on November 1, 2022 to evaluate a non-binding offer received from CD&R and to explore alternative transactions,” said Focus Financial in a statement.
They added that they have been informed the $53 per share offer from CD&R represented its “best and final” offer and that it was submitted with the understanding that there would be no further price negotiations.
The price represents a 36% premium to Focus’ 60-day volume weighted average price as of Wednesday’s close and a 48% premium to Focus’ closing stock price on December 28, the day the company’s special committee authorized its financial advisors to contact other potential bidders regarding interest in a deal.
