Unilever Reduces Equity Interest in JohnsonDiversey

On October 7, 2009, Unilever announced that it is to reduce its equity interest in JohnsonDiversey, Inc. from 33% to 4%. In connection with this transaction, Unilever will receive $158 million in cash, together with $250 million senior notes with a 10.5% coupon, payable in cash or kind. Cravath is representing Unilever in this transaction. This transaction is a follow-on from the original 2002 sale of Unilever’s institutional and industrial cleaning business to Johnson Wax Professional, in which Cravath also represented Unilever.

JohnsonDiversey and Clayton Dubilier & Rice, Inc. (“CD&R”) have also announced that CD&R is to take a 46% equity interest in JohnsonDiversey as part of a broader recapitalization transaction. In addition, JohnsonDiversey will continue to sell and distribute certain Unilever products into the professional commercial cleaning and hygiene market. The transaction, which is conditioned upon completing the debt financing and customary regulatory approvals, is expected to close prior to the end of the year.

The lawyers involved in this transaction include partner Mark I. Greene and associates Sarah S. Jones, Susan K. Jong and John R. Sobolewski on corporate matters.