Clayton, Dubilier & Rice

To explain some of these mechanisms, I'm going to use the example of Morrison's that is a supermarket chain in Britain.

I wanted to say British, but no, not really British because it's owned by an American private equity company called CD&R.

Morrison's employs over 96,000 people.

And the average annual wage, the average is £19,463, which is below a full-time minimum wage.

In fact, the current customer assistant wage is as low as they can really get it legally.

It's about £13 an hour.

Prior to being taken over by the private equity firm CD&R in America that happened in 2021, Morrison's was a profitable business and it owned the stores within which it operated.

It also paid taxes.

And that, you know, that is the most, if we talk about the Sycamore Boots being a very creative, complex private equity deal, this is like, you know, as vanilla as it possibly gets.

And just to kind of expand this very quickly, the likes of Morrison's, they were acquired by CD&R, Clayton Dubillier and Rice in October 2021.

They are probably going to be up for sale quite soon.

ITSU, which bought a, acquired a minority stake.

... delisted.

They went private, so Clayton, Dubilier & Rice, private equity firm, they were the leader in that transaction.

Stone Point Capital, still an investor in Focus, and that deal in 2023 valued Focus at roughly $7 billion.

Which, but we've talked about this before, that was probably a pretty good discount.

We're already calling this a playbook, so let's lean into the sports metaphors here and argue that this is the time for inspiring the players to get back on the field.

Here's Chris Satchell, head of portfolio tech at CDNR.

You

know, I might be dealing with a CTO, a CIO, a CISO, a combination that has just put a lot of emotional energy into a difficult process with the expectation that it's going to be a great event.

Yeah.

Um, kind of, because they're gonna be majority owned by a private equity firm, CDNR, and then minority ownership from, uh, our friends at McKesson, public, uh, public company.

That is, like, an interesting thing to watch.

Option Care does home and alternative site infusion centers.

Shares of Constellation Energy jumped more than 12% after Alphabet entered into a major power deal with the company.

And shares of Option Care health soared nearly 33% after drug distributor McKesson and private equity firm Clayton, Dubilier & Rice agreed to buy the infusion therapy provider in a deal worth about $5.8 billion.

That's BizNews Daybreak for today.

You can watch the full interviews on the BizNews TV YouTube channel and read more at biznews.com. I'm Asimanyana.

And Option Care Health saw its stock soar more than thirty percent.

The private equity firm CDNR and healthcare services provider McKesson are buying the company.

Option Care Health offers infusion therapy and services to patients at home.

Heads up, an artificial intelligence tool helped us make this episode by creating summaries that were based on WSJ reporting and then reviewed and adapted by an editor.