Clayton, Dubilier & Rice to Acquire John Deere Landscapes

          Clayton, Dubilier & Rice to Acquire John Deere Landscapes

Deere & Company Retains 40% Stake

PR Newswire

NEW YORK, Oct. 28, 2013

NEW YORK, Oct. 28, 2013 /PRNewswire/ --Clayton, Dubilier & Rice ("CD&R")
today announced an agreement under which CD&R will acquire John Deere
Landscapes ("JDL"), a unit of Deere & Company's (NYSE:DE) Agriculture & Turf
segment. Deere will initially retain a 40% ownership stake in the new
standalone company. The carve-out transaction is valued at approximately $465
million.

With over $1 billion in annual revenue, JDL is the largest North American
distributor of landscaping products sold primarily to professional landscape
contractors for use in residential and commercial settings. Operating over
400 branches in the United States and Canada, JDL is the only national
distributor in a highly fragmented industry. JDL distributes wholesale
irrigation, landscape lighting, nursery, and turf and maintenance supplies.
Some turf and maintenance products are sold under the JDL-owned LESCO brand.

"John Deere Landscapes is a market-leading, branch-based distribution business
managed by a talented executive team that we are very excited to have as
partners," said David Wasserman, a CD&R Partner. "The business has many
attractive features, including scale, breadth of product offering and service
excellence, all of which provide significant strategic and competitive
advantages in supporting the requirements of the professional landscape
contractor."

"CD&R's focus on growth and deep experience with businesses like ours make
them an ideal partner," said David Werning, President of John Deere
Landscapes. "Deere's ongoing equity ownership reflects its interest in
remaining part of a successful landscapes distribution business."

"The new company should benefit from a recovery in residential and commercial
construction activity as well as through the meaningful value creation
opportunities available to drive the business forward," said CD&R Partner Ken
Giuriceo. "We look forward to working with the JDL management team and Deere
to build an even stronger value-added distributor." 

Paul Pressler, a CD&R Operating Partner, will assume the role of Chairman upon
the close of the transaction, expected in December.

CD&R has obtained committed financing from UBS Loan Finance LLC, ING Capital
LLC, HSBC Securities (USA) Inc., and Natixis. Debevoise & Plimpton LLP acted
as legal advisor to CD&R in connection with the transaction.

About Clayton, Dubilier & Rice

Founded in 1978, Clayton, Dubilier & Rice is a private equity firm with an
investment strategy predicated on producing financial returns through building
stronger, more profitable businesses. Since inception, CD&R has managed the
investment of more than $18 billion in 56 U.S. and European businesses with an
aggregate transaction value of more than $90 billion. For more information,
please visit www.cdr-inc.com.

About John Deere Landscapes

John Deere Landscapes is the nation's leading supplier of wholesale
irrigation, landscape lighting, nursery, and turf and maintenance supplies for
green industry contractors. Dedicated to becoming the distributor of choice
for landscape, irrigation and turf care professionals, John Deere Landscapes
also offers additional services that support the core businesses of green
industry contractors. Headquartered in Alpharetta, Georgia, John Deere
Landscapes operates over 400 branches in North America and has approximately
2,000 employees.

Contacts: Thomas C. Franco
+1 (212) 407 5225
tfranco@cdr-inc.com

Daniel G. Jacobs
+1 (212) 407 5218
djacobs@cdr-inc.com

SOURCE Clayton, Dubilier & Rice

Website: http://www.cdr-inc.com
 
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