|
Cayman Islands
(State or other jurisdiction of
incorporation or organization) |
| |
2842
(Primary Standard Industrial
Classification Code Number) |
| |
Not applicable
(I.R.S. Employer
Identification No.) |
|
|
Bradley C. Reed, P.C.
Alexander M. Schwartz Kirkland & Ellis LLP 300 North LaSalle Chicago, IL 60654 (312) 862-2000 |
| |
Thomas Holden
Rachel D. Phillips Ropes & Gray LLP 3 Embarcadero Center San Francisco, CA 94111 (415) 315-6300 |
|
|
Large accelerated filer
☐
|
| |
Accelerated Filer
☐
|
|
|
Non-accelerated filer
☒
|
| |
Smaller Reporting Company
☐
|
|
| | | |
Emerging Growth Company
☐
|
|
| | |||||||||||
Title of Each Class of Securities to be Registered
|
| | |
Proposed
Maximum Aggregate Offering(1)(2) |
| | |
Amount of
Registration Fee |
| |||
Ordinary shares, par value $ per share
|
| | |
$100,000,000
|
| | | | $ | 10,910 | | |
| | | | | 1 | | | |
| | | | | 21 | | | |
| | | | | 43 | | | |
| | | | | 45 | | | |
| | | | | 46 | | | |
| | | | | 47 | | | |
| | | | | 48 | | | |
| | | | | 51 | | | |
| | | | | 53 | | | |
| | | | | 55 | | | |
| | | | | 62 | | | |
| | | | | 94 | | | |
| | | | | 112 | | | |
| | | | | 119 | | | |
| | | | | 139 | | | |
| | | | | 140 | | | |
| | | | | 143 | | | |
| | | | | 147 | | | |
| | | | | 162 | | | |
| | | | | 173 | | | |
| | | | | 181 | | | |
| | | | | 181 | | | |
| | | | | 181 | | | |
| | | | | F-1 | | |
|
![]() |
| |
![]() |
|
|
![]() |
| |
![]() |
|
| | |
Successor (consolidated)
|
| | |
Predecessor (combined)
|
| ||||||||||||||||||||||||
| | |
Years end December 31,
|
| |
For the period
March 15 – December 31 |
| | |
For the period
January 1 – September 5 |
| |||||||||||||||||||||
(in millions, except per share amounts)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| | |
2017
|
| |||||||||||||||
Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 2,629.2 | | | | | $ | 2,623.9 | | | | | $ | 2,688.1 | | | | | $ | 870.2 | | | | | | $ | 1,681.3 | | |
Cost of sales
|
| | | | 1,559.4 | | | | | | 1,522.1 | | | | | | 1,570.6 | | | | | | 518.2 | | | | | | | 959.0 | | |
Gross profit
|
| | | | 1,069.8 | | | | | | 1,101.8 | | | | | | 1,117.5 | | | | | | 352.0 | | | | | | | 722.3 | | |
Selling, general and administrative expenses
|
| | | | 768.2 | | | | | | 855.6 | | | | | | 883.8 | | | | | | 284.3 | | | | | | | 641.9 | | |
Transition and transformation costs
|
| | | | 42.5 | | | | | | 52.8 | | | | | | 120.6 | | | | | | 53.7 | | | | | |
|
—
|
| |
Management fee
|
| | | | 7.5 | | | | | | 7.5 | | | | | | 7.5 | | | | | | 2.4 | | | | | |
|
—
|
| |
Share-based compensation
|
| | | | 67.5 | | | | | | 3.0 | | | | |
|
—
|
| | | |
|
—
|
| | | | | | 12.3 | | |
Amortization of intangible assets
|
| | | | 98.2 | | | | | | 93.7 | | | | | | 91.2 | | | | | | 19.4 | | | | | | | 40.6 | | |
Impairment of goodwill
|
| | | | — | | | | |
|
—
|
| | | | | 68.5 | | | | |
|
—
|
| | | | |
|
—
|
| |
Restructuring costs
|
| | | | 25.6 | | | | | | 19.8 | | | | | | 24.9 | | | | |
|
—
|
| | | | | | 0.1 | | |
Merger and acquisition-related costs
|
| | | | 1.0 | | | | | | 0.3 | | | | | | 7.3 | | | | | | 38.0 | | | | | |
|
—
|
| |
Operating income (loss)
|
| | | | 59.3 | | | | | | 69.1 | | | | | | (86.3) | | | | | | (45.8) | | | | | | | 27.4 | | |
Interest expense
|
| | | | 127.7 | | | | | | 141.0 | | | | | | 135.2 | | | | | | 42.7 | | | | | | | 9.0 | | |
Gain on sale of business investment
|
| | | | — | | | | | | (13.0) | | | | |
|
—
|
| | | |
|
—
|
| | | | |
|
—
|
| |
Bridge commitment fees
|
| | | | — | | | | |
|
—
|
| | | |
|
—
|
| | | | | 7.5 | | | | | |
|
—
|
| |
Foreign currency loss related to Argentina subsidiaries
|
| | | | 1.6 | | | | | | 11.4 | | | | | | 2.4 | | | | |
|
—
|
| | | | |
|
—
|
| |
Loss on settlement of foreign currency
contract |
| | | | — | | | | | | — | | | | | | — | | | | | | 121.3 | | | | | | | — | | |
Other (income) expense, net
|
| | | | (40.7) | | | | | | 6.0 | | | | | | 0.8 | | | | | | (2.7) | | | | | | | (0.9) | | |
Income (loss) before income tax provision (benefit)
|
| | | | (29.3) | | | | | | (76.3) | | | | | | (224.7) | | | | | | (214.6) | | | | | | | 19.3 | | |
Income tax provision (benefit)
|
| | | | 9.2 | | | | | | 32.7 | | | | | | 14.4 | | | | | | (61.6) | | | | | | | 23.8 | | |
Net loss
|
| | | $ | (38.5) | | | | | $ | (109.0) | | | | | $ | (239.1) | | | | | $ | (153.0) | | | | | | $ | (4.5) | | |
Basic and diluted loss per share(1)
|
| | | $ | (0.20) | | | | | $ | (1.15) | | | | | $ | (2.54) | | | | | $ | (1.63) | | | | | | | | | |
| | |
Successor (consolidated)
|
| | |
Predecessor (combined)
|
| ||||||||||||||||||||||||
| | |
Years end December 31,
|
| |
For the period
March 15 – December 31 |
| | |
For the period
January 1 – September 5 |
| |||||||||||||||||||||
(in millions, except per share amounts)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| | |
2017
|
| |||||||||||||||
Basic and diluted weighted-average shares outstanding(1)
|
| | | | 195.80 | | | | | | 94.40 | | | | | | 94.00 | | | | | | 93.70 | | | | | | | | | |
Basic and diluted pro forma loss per share(1)(2)
|
| | | $ | | | | | | $ | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted pro forma weighted-
average shares outstanding(1)(2) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance Sheet Data (as of the end of period):
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
Working capital
|
| | | $ | (6.6) | | | | | $ | 29.7 | | | | | $ | 42.4 | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | 192.9 | | | | | | 128.3 | | | | | | 73.4 | | | | | | | | | | | | | | | |
Property and equipment, net
|
| | | | 188.3 | | | | | | 172.2 | | | | | | 206.8 | | | | | | | | | | | | | | | |
Total assets
|
| | | | 4,286.1 | | | | | | 4,213.5 | | | | | | 4,190.0 | | | | | | | | | | | | | | | |
Total liabilities
|
| | | | 4,794.7 | | | | | | 4,534.7 | | | | | | 4,546.9 | | | | | | | | | | | | | | | |
Total stockholder’s equity
|
| | | | (508.6) | | | | | | (321.2) | | | | | | (356.9) | | | | | | | | | | | | | | | |
Other Financial Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||
EBITDA(3) | | | | $ | 288.1 | | | | | $ | 242.7 | | | | | $ | 76.9 | | | | | $ | (131.4) | | | | | | $ | 116.9 | | |
Non-GAAP consolidated Adjusted EBITDA(3)
|
| | | $ | 401.2 | | | | | $ | 339.8 | | | | | $ | 321.6 | | | | | $ | 113.8 | | | | | | $ | 196.0 | | |
Dosing and dispensing equipment expenditures
|
| | | $ | (45.6) | | | | | $ | (93.4) | | | | | $ | (83.2) | | | | | $ | (24.5) | | | | | | $ | (38.5) | | |
Capital expenditures
|
| | | $ | (41.4) | | | | | $ | (29.0) | | | | | $ | (44.2) | | | | | $ | (4.1) | | | | | | $ | (12.3) | | |
| | |
Year Ended December 31,
|
| |||||||||||||||||||||||||||||||||
(in millions, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |||||||||||||||||||||||||||
Net Sales – Prior Year
|
| | | $ | 2,623.9 | | | | | | | | | | | $ | 2,688.1 | | | | | | | | | | | $ | 2,551.5 | | | | | | | | |
Organic change (non-U.S. GAAP)
|
| | | | 48.1 | | | | | | 1.8% | | | | | | 52.2 | | | | | | 1.9% | | | | | | 125.0 | | | | | | 4.9% | | |
SCJ(4) | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (22.6) | | | | | | (0.9)% | | |
Unilever(5) | | | | | — | | | | | | — | | | | | | (6.8) | | | | | | (0.3)% | | | | | | (16.3) | | | | | | (0.6)% | | |
Acquisition
|
| | | | 4.9 | | | | | | 0.2% | | | | | | 25.5 | | | | | | 0.9% | | | | | | 79.8 | | | | | | 3.1% | | |
Constant dollar change (non-U.S. GAAP)
|
| | | | 53.0 | | | | | | 2.0% | | | | | | 70.9 | | | | | | 2.6% | | | | | | 165.9 | | | | | | 6.5% | | |
Foreign currency translation
|
| | | | (47.7) | | | | | | (1.8)% | | | | | | (135.1) | | | | | | (5.0)% | | | | | | (29.3) | | | | | | (1.1)% | | |
Total change (U.S. GAAP)
|
| | | | 5.3 | | | | | | 0.2% | | | | | | (64.2) | | | | | | (2.4)% | | | | | | 136.6 | | | | | | 5.4% | | |
Net Sales – Current Year
|
| | | $ | 2,629.2 | | | | | | | | | | | $ | 2,623.9 | | | | | | | | | | | $ | 2,688.1 | | | | | | | | |
| | |
Successor (consolidated)
|
| | |
Predecessor (combined)
|
| ||||||||||||||||||||||||
| | |
Years Ended December 31,
|
| |
For the period
March 15 – December 31, |
| | |
For the period
January 1 – September 5 |
| |||||||||||||||||||||
(in millions, except percentages)
|
| |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| | |
2017
|
| |||||||||||||||
Income (loss) before income tax provisions (benefit)
|
| | | $ | (29.3) | | | | | $ | (76.3) | | | | | $ | (224.7) | | | | | $ | (214.6) | | | | | | $ | 19.3 | | |
Interest expense
|
| | | | 127.7 | | | | | | 141.0 | | | | | | 135.2 | | | | | | 42.7 | | | | | | | 9.0 | | |
Interest income
|
| | | | (5.9) | | | | | | (7.5) | | | | | | (5.8) | | | | | | (1.4) | | | | | | | (3.3) | | |
Amortization expense of intangible assets
acquired |
| | | | 98.2 | | | | | | 93.7 | | | | | | 91.2 | | | | | | 19.4 | | | | | | | 40.6 | | |
Depreciation expense included in cost of sales
|
| | | | 89.5 | | | | | | 84.4 | | | | | | 73.4 | | | | | | 21.5 | | | | | | | 41.1 | | |
Depreciation expense included in selling, general and administrative expenses
|
| | | | 7.9 | | | | | | 7.4 | | | | | | 7.6 | | | | | | 1.0 | | | | | | | 10.2 | | |
EBITDA
|
| | | $ | 288.1 | | | | | $ | 242.7 | | | | | $ | 76.9 | | | | | $ | (131.4) | | | | | | $ | 116.9 | | |
Impairment of goodwill(1)
|
| | | | — | | | | | | — | | | | | | 68.5 | | | | | | — | | | | | | | — | | |
Transition and transformation costs and non-recurring costs(2)
|
| | | | 42.5 | | | | | | 52.8 | | | | | | 120.6 | | | | | | 63.3 | | | | | | | — | | |
Restructuring costs(3)
|
| | | | 25.6 | | | | | | 19.8 | | | | | | 24.9 | | | | | | — | | | | | | | 0.1 | | |
Foreign currency loss related to Argentina subsidiaries(4)
|
| | | | 1.6 | | | | | | 11.4 | | | | | | 3.4 | | | | | | — | | | | | | | — | | |
Loss on foreign currency forward contract(5)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 121.3 | | | | | | | — | | |
Adjustment of tax indemnification asset(6)
|
| | | | 2.8 | | | | | | 7.1 | | | | | | 31.0 | | | | | | (3.9) | | | | | | | — | | |
Merger and acquisition-related cost(7)
|
| | | | 1.0 | | | | | | 0.3 | | | | | | 7.3 | | | | | | 38.0 | | | | | | | — | | |
Acquisition accounting adjustments(8)
|
| | | | — | | | | | | 1.9 | | | | | | 5.3 | | | | | | 16.0 | | | | | | | — | | |
Bain Capital management fee(9)
|
| | | | 7.5 | | | | | | 7.5 | | | | | | 7.5 | | | | | | 2.4 | | | | | | | — | | |
Non-cash pension and other post-employment benefit plan(10)
|
| | | | (12.9) | | | | | | (8.8) | | | | | | (10.5) | | | | | | (2.9) | | | | | | | (5.9) | | |
Foreign currency loss (gain)(11)
|
| | | | (25.1) | | | | | | 10.8 | | | | | | (16.3) | | | | | | 0.8 | | | | | | | 0.1 | | |
Factoring fees(12)
|
| | | | 4.3 | | | | | | 3.4 | | | | | | 0.6 | | | | | | — | | | | | | | — | | |
Share-based incentive compensation(13)
|
| | | | 67.5 | | | | | | 3.0 | | | | | | — | | | | | | — | | | | | | | 12.3 | | |
Charges related to sale of Diversey(14)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 23.1 | | |
Bridge commitment fees(15)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 7.5 | | | | | | | — | | |
Stand-alone adjustment(16)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | 40.3 | | |
Gain on sale of business and investments(17)
|
| | | | — | | | | | | (13.0) | | | | | | — | | | | | | — | | | | | | | — | | |
Non-cash items
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1.8 | | | | | | | 4.2 | | |
Other items
|
| | | | (1.7) | | | | | | 0.9 | | | | | | 2.4 | | | | | | 0.9 | | | | | | | 4.9 | | |
Non-GAAP consolidated Adjusted EBITDA
|
| | | $ | 401.2 | | | | | $ | 339.8 | | | | | $ | 321.6 | | | | | $ | 113.8 | | | | | | $ | 196.0 | | |
Changes in net working capital(18)
|
| | | | (86.9) | | | | | | (70.3) | | | | | | 9.6 | | | | | |||||||||||
Collection of deferred factored receivables
|
| | | | 66.9 | | | | | | 80.8 | | | | | | 12.5 | | | | | |||||||||||
Dosing and dispensing equipment, net
|
| | | | (45.6) | | | | | | (93.4) | | | | | | (83.2) | | | | | |||||||||||
Capital expenditures
|
| | | | (41.4) | | | | | | (29.0) | | | | | | (44.2) | | | | | |||||||||||
Unlevered Cash Flow(19)
|
| | | $ | 294.2 | | | | | $ | 227.9 | | | | | $ | 216.3 | | | | | |||||||||||
Unlevered Cash Flow Conversion(20)
|
| | | | 73% | | | | | | 67% | | | | | | 67% | | | | |
| | |
As of December 31, 2020
|
| |||||||||
| | |
Actual
|
| |
Pro Forma
|
| ||||||
| | |
(in millions)
|
| |||||||||
Cash and cash equivalents
|
| | | $ | 192.9 | | | | | $ | | | |
Total debt: | | | | | | | | | | | | | |
Senior Secured Credit Facilities:
|
| | | | | | | | | | | | |
US Dollar Term Loan
|
| | | | 873.0 | | | | | | | | |
US Dollar Incremental Loan
|
| | | | 149.6 | | | | | | | | |
Euro Term Loan
|
| | | | 1,146.9 | | | | | | | | |
Revolving Credit Facility
|
| | | | — | | | | | | | | |
Senior Notes
|
| | | | 548.5 | | | | | | | | |
Short-term borrowings
|
| | | | 0.4 | | | | | | | | |
Finance lease obligations
|
| | | | 5.2 | | | | |||||
Financing obligations
|
| | | | 22.5 | | | | |||||
Unamortized deferred financing costs
|
| | | | (39.6) | | | | | | | | |
Unamortized original issue discount
|
| | | | (6.2) | | | | | | | | |
Total debt
|
| | | $ | 2,700.3 | | | | | $ | | | |
Preferred Equity Certificates
|
| | | $ | 641.7 | | | | | | | | |
Shareholders’ Equity: | | | | | | | | | | | | | |
Common stock, $0.01 par value per share; 195,800,697 shares authorized and outstanding, actual
|
| | | $ | 2.2 | | | | | | | | |
Ordinary shares, $0.01 par value per share; shares authorized and shares outstanding, pro forma
|
| | | | | | | | | | | | |
Preferred shares, $0.01 par value per share; no shares authorized or outstanding, actual; shares authorized and no shares outstanding, pro forma
|
| | | | | | | | | | | | |
Additional paid-in capital
|
| | | | 247.2 | | | | | | | | |
Accumulated deficit
|
| | | | (545.3) | | | | | | | | |
Accumulated other comprehensive loss
|
| | | | (212.7) | | | | | | | | |
Total stockholders’ equity
|
| | | $ | (508.6) | | | | | $ | | | |
|
Assumed initial public offering price per share
|
| | | | | | $ | | | |
|
Historical net tangible book value per share as of December 31, 2020
|
| |
|
| | | | | | |
|
Increase in net tangible book value per share attributable to the investors in this offering
|
| | | | | |||||
|
Pro forma net tangible book value per share after giving effect to this offering
|
| | | | | | | | | |
|
Dilution in net tangible book value per share to the investors in this offering
|
| | | | | | $ | | | |
| | |
Shares Purchased
|
| |
Total Consideration
|
| |
Average Price
|
| ||||||
| | |
Number
|
| |
Percentage
|
| |
Amount
|
| |
Percentage
|
| |
Per Share
|
|
Existing Shareholders
|
| |
|
| |
|
| | | | | | | | | |
New Investors
|
| | | | | | | | | | | | | | | |
Total
|
| | | | | | | | | | | | | | | |
(in millions)
|
| |
Constellation
(BC) 2 S.à.r.l. As Reported |
| |
Reorganization
Transactions Adjustments (a) |
| | | | |
Offering
Adjustments (a) |
| | | | |
Diversey
Holdings Ltd. Pro Forma (b) |
| ||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 192.9 | | | | | $ | | | | | | | | $ | | | |
(8, 9)
|
| | | $ | | | |||
Trade receivables
|
| | | | 342.0 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other receivables
|
| | | | 71.0 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Inventories
|
| | | | 282.4 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Prepaid expenses and other current assets
|
| | | | 62.0 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current assets
|
| | | $ | 950.3 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Property and equipment
|
| | | | 188.3 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill
|
| | | | 467.0 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Intangible assets
|
| | | | 2,311.4 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other non-current assets
|
| | | | 369.1 | | | | | | | | | |
(4)
|
| | | | | | | | | | | | | | | |
Total assets
|
| | | $ | 4,286.1 | | | | | $ | | | | | | | | $ | | | | | | | | $ | | | |||
Liabilities and stockholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Short-term borrowings
|
| | | $ | 0.4 | | | | | $ | | | | | | | | $ | | | | | | | | $ | | | |||
Current portion of long-term debt
|
| | | | 13.2 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | | 404.6 | | | | | | | | | |
(6, 7)
|
| | | | | | | |
(10, 11)
|
| | | | | | |
Accrued restructuring costs
|
| | | | 26.3 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other current liabilities
|
| | | | 512.4 | | | | | | | | | |
(4)
|
| | | | | | | | | | | | | | | |
Total current liabilities
|
| | | | 956.9 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Long-term debt, less current portion
|
| | | | 2,686.7 | | | | | | | | | |
(9)
|
| | | | | | | | | | | | | | | |
Preferred equity certificates
|
| | | | 641.7 | | | | | | | | | |
(2)
|
| | | | | | | | | | | | | | | |
Deferred taxes
|
| | | | 181.1 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tax receivable agreement liability
|
| | | | | | | | | | | | | |
(3)
|
| | | | | | | | | | | | | | | |
Other non-current liabilities
|
| | | | 328.3 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities
|
| | | | 4,794.7 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common stock
|
| | | | 2.2 | | | | | | | | | |
(1)
|
| | | | | | | | | | | | | | | |
Ordinary shares
|
| | | | | | | | | | | | | |
(1, 2, 4, 5)
|
| | | | | | | |
(8)
|
| | | | | | |
Additional paid-in capital
|
| | | | 247.2 | | | | | | | | | |
(1, 2, 3, 4, 5)
|
| | | | | | | |
(8, 11)
|
| | | | | | |
Accumulated deficit
|
| | | | (545.3) | | | | | | | | | |
(5, 6, 7)
|
| | | | | | | |
(10)
|
| | | | | | |
Accumulated other comprehensive loss
|
| | | | (212.7) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total stockholders’ equity
|
| | | | (508.6) | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders’ equity
|
| | | $ | 4,286.1 | | | | | $ | | | | | | | | $ | | | | | | | | $ | | | |
(in millions, except per share amounts)
|
| |
Constellation
(BC) 2 S.à. r.l. As Reported |
| |
Reorganization
|