Blackstone has agreed to acquire Chamberlain Group from The Duchossois Group, the latter which will retain a meaningful interest in the company. The transaction values the software-based and connected services business at approximately $5 billion. BDT & Co provided financial advice to The Duchossois Group, while Wells Fargo, Barclays, and DBO Partners advised Blackstone. Wells Fargo, Barclays, Citi, and Deutsche Bank are providing committed debt financing for the transaction.
OAK BROOK, Ill.–(BUSINESS WIRE)–The Chamberlain Group LLC (“Chamberlain Group” or “the Company”), a global leader in smart access solutions, today announced that its owner, The Duchossois Group, Inc. (“The Duchossois Group”), has entered into a definitive agreement to sell Chamberlain Group to private equity funds managed by Blackstone (“Blackstone”). Blackstone is investing in Chamberlain Group through its core private equity strategy, which invests in high-quality, market-leading companies for longer periods than traditional private equity.
Following the close of the transaction, Chamberlain Group would remain a privately held company headquartered in Oak Brook, Ill. As part of the agreement, The Duchossois Group will retain meaningful ownership in the Company and two seats on the Company’s Board of Directors following the close of the transaction. The transaction values Chamberlain Group at approximately $5 billion.
A leading global investment firm, Blackstone is expected to provide additional resources and expertise for Chamberlain Group to scale its software-based and connected services business into new markets. Chamberlain Group will build on its leading presence providing high-quality access hardware and seamless, cloud-driven solutions that move customers safely through their garages, homes, communities, businesses and storage facilities. With its transformational myQ® platform, which brings access to life by empowering new behaviors, the investment from Blackstone will position Chamberlain Group to capitalize on connectivity megatrends and expand its software services strategy deeper into commercial, industrial and automotive markets.
“Today marks an important inflection point for Chamberlain Group as it continues its growth and transformation story,” said JoAnna Sohovich, CEO of Chamberlain Group. “I enthusiastically support this transaction because it is in the best interests of our shareholders and our Company. Blackstone’s deep experience and success in forming large corporate partnerships with family-led companies provides us with the perfect foundation to propel Chamberlain Group through its next chapter. Blackstone’s extensive presence across geographies will help Chamberlain Group build meaningful relationships and capitalize on new market opportunities.”
Craig Duchossois, Executive Chair of The Duchossois Group, added, “Chamberlain Group has been an important part of our family since 1980. The Duchossois Group has instilled deep-rooted values and resources across Chamberlain Group, and we are exceptionally proud of the strong, vibrant and growing business it is today. As an ongoing investor in the Company, we look forward to the team’s future accomplishments with Blackstone’s support and partnership. Under new ownership, I know that Chamberlain Group will continue to meet market needs in an innovative and quality manner, while taking full advantage of the broad talent, reach and experience apparent across the Blackstone organization.”
Peter Wallace, Global Head of Core Private Equity at Blackstone, said, “Our long-term Core Private Equity business is proud to invest in an enduring market leader like Chamberlain Group. The Duchossois Group and Chamberlain Group’s leadership team have built a tremendous business. We admire the Company’s deep commitment to quality, the brand loyalty it has earned through consistent excellence, and its constant drive to enrich customer offerings through technology. We believe these qualities will continue to drive growth for years to come and we are excited to partner with the Company on that journey.”
Seth Meisel, a Senior Managing Director at Blackstone, said, “Chamberlain Group stands at the center of several secular mega trends — including U.S. housing and e-commerce — that are key thematic investment areas for Blackstone. We are excited to invest in this business and its further expansion into connected homes, businesses, and communities alongside Chamberlain Group’s impressive management team.”
The transaction is expected to close by the end of 2021, subject to regulatory approvals and customary closing conditions.
BDT & Company, LLC acted as sole financial advisor and Jones Day acted as legal advisor to The Duchossois Group. Wells Fargo, Barclays, Citi, and Deutsche Bank are providing committed debt financing for the transaction, and Wells Fargo, Barclays, and DBO Partners are acting as financial advisors to Blackstone. Simpson Thacher & Bartlett LLP is serving as Blackstone’s legal counsel.
About Chamberlain Group
Chamberlain Group is a global leader in smart access solutions across residential and commercial properties. Our prominent brands LiftMaster®, Chamberlain®, Merlin® and Grifco® are found in millions of residential and commercial access applications across the globe. Our innovative products and partnerships, powered by our myQ® smart ecosystem, provide customers with smart access solutions to move safely through garages, homes, communities, businesses and storage facilities. Chamberlain Group pioneered vehicle-to-home connectivity through patented technology aboard hundreds of millions of vehicles. Chamberlain Group includes Controlled Products Systems Group, a leading wholesale distributor of perimeter access control equipment in the U.S., and Systems, LLC, one of North America’s leading dock leveler manufacturers. Further information is available @ www.chamberlaingroup.com. Follow Chamberlain Group on Facebook, LinkedIn and Twitter.
Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $684 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.