(Bloomberg) -- Roper Technologies Inc. agreed to sell a majority stake in its industrial operations to affiliates of private equity firm Clayton Dubilier & Rice, wrapping a monthslong process as the manufacturer focuses on business lines with less cyclicality.
Roper will receive pretax cash proceeds of about $2.6 billion while retaining a 49% stake in the standalone entity, which includes its process technologies unit, according to a statement Wednesday. The deal is expected to close by the end of the year.
The announcement confirms a Bloomberg News report last month that CD&R was nearing an agreement for the assets. Roper has been exploring a sale since last October.
The deal is part of a divestiture strategy to reshape Roper around higher-growth and less-cyclical business lines. The transaction will also bolster the Sarasota, Florida-based company’s cash while also giving it the ability to tap additional capital with the future exit of the minority stake, Roper said.
CD&R has been an active dealmaker recently, agreeing in April to buy a majority stake in Kindred at Home Hospice from Humana Inc. for about $2.8 billion. The firm also acquired WM Morrison Supermarkets in the UK last year.
Roper shares have declined 10% this year, slightly better than the performance of the S&P 500.
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