Research Update: Hunter Douglas (Solis III B.V. ) Rated 'B+', Outlook Stable; Debt Rated

On Dec. 30, 2021, 3G Capital announced its acquisition of a 75% stake in Solis III B.V. (to be renamed Hunter Douglas Finance B.V.), which will be taken private post transaction close. The founding Sonnenberg family will continue to hold a 25% interest in the company. The transaction will be financed with $4.6 billion of debt and $3.2 billion of common equity. The company intends to acquire several smaller regional players and has earmarked a portion of this debt raise toward funding these acquisitions in the next six months. Pro forma for the incremental debt and acquisitions, we estimate that the company's leverage will be in the mid-5x area upon close. We assigned our 'B+' issuer credit rating to Solis

...- On Dec. 30, 2021, 3G Capital announced its acquisition of a 75% stake in Solis III B.V. (to be renamed Hunter Douglas Finance B.V.), which will be taken private post transaction close. The founding Sonnenberg family will continue to hold a 25% interest in the company. - The transaction will be financed with $4.6 billion of debt and $3.2 billion of common equity. The company intends to acquire several smaller regional players and has earmarked a portion of this debt raise toward funding these acquisitions in the next six months. - Pro forma for the incremental debt and acquisitions, we estimate that the company's leverage will be in the mid-5x area upon close. - We assigned our 'B+' issuer credit rating to Solis III B.V. (to be renamed Hunter Douglas Finance B.V.), the ultimate parent of the group and the entity where consolidated financial statements will be issued going forward. The outlook is stable. - We also assigned our 'B+' issue-level and '3' recovery rating to the company's proposed...

Research Update