3G Capital buys control of Luxaflex maker in US$7b deal

[NEW YORK] Buyout firm 3G Capital has agreed to acquire a controlling stake in Hunter Douglas, in a deal that values the maker of Luxaflex blinds at about $7.1 billion.

New York-based 3G Capital will buy a 75 per cent stake in Hunter Douglas for US$198 per share, a 73 per cent premium to Thursday's closing price, the companies said in a statement. Hunter Douglas shares rose 70 per cent in early Amsterdam trading on Friday.

Ralph Sonnenberg, whose father founded the maker of window coverings more than 100 years ago, and who holds 93.6 per cent of the stock, has agreed to the offer. Minority shareholders of Rotterdam-based Hunter Douglas will also be able to exit at the same price.

After the deal, the Sonnenberg family will hold a 25 per cent stake in the company. Hunter Douglas employs some 23,000 people in 100 countries, according to its website. As well as Luxaflex, it makes Duette and Silhouette brand blinds, and architectural products such as motorised sun louvers and sliding shutters.

Credit Suisse Group advised the Sonnenberg family. 3G Capital was advised by Lazard, JP Morgan and Morgan Stanley. The billionaire founders of 3G Capital - Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira - have orchestrated some of the biggest consumer-product buyouts.

In 2015, 3G Capital partnered with Warren Buffett's Berkshire Hathaway to create Kraft Heinz, having previously combined Burger King and Tim Hortons to form Restaurant Brands International, according to the company website. BLOOMBERG