Cheney Brothers Celebrates Successful Exit with CD&R Support
Deal News | Nov 26, 2024 | RWB Group AG
Cheney Brothers, a Florida-based food distributor established in 1925, has achieved remarkable growth with the strategic investment from private equity firm Clayton, Dubilier & Rice (CD&R). This investment, made in July 2020, aimed at expanding Cheney Brothers’ market presence, particularly in Florida and North Carolina. Under CD&R’s guidance, Cheney Brothers increased its annual sales to approximately $3.2 billion and expanded its distribution network across five modern centers in four states. The investment culminated in an advantageous exit for CD&R, although the return to RWB Group AG’s funds—via the sale of a relatively small stake—was modest, amounting to nearly $270,000. However, the capital involved experienced significant multiplication during the investment period. The exit funds were channeled to specific RWB Global Market and RWB Direct Return funds.
Sectors
- Private Equity
- Food Distribution
Geography
- United States – Cheney Brothers is based in Florida, USA, and its operations and growth initiatives have been primarily focused in the southeastern United States.
- Germany – RWB Group AG, associated with the sale, is based in Germany, highlighting the cross-border nature of this private equity transaction.
Industry
- Private Equity – This sector is relevant due to the involvement of Clayton, Dubilier & Rice in acquiring a stake in Cheney Brothers, aiming to facilitate the company's growth.
- Food Distribution – Cheney Brothers operates within this sector, supplying a vast array of food products to various establishments such as restaurants and hotels.
Financials
- 270,000 USD – The proceeds from CD&R's exit returned to RWB Group AG's funds.
- 3.2 billion USD – Cheney Brothers' annual revenue following the investment and growth supported by CD&R.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Cheney Brothers | Target Company | Company | A family-run food distribution company based in Riviera Beach, Florida. |
| Clayton, Dubilier & Rice | Private Equity Investor | Company | A private equity firm that acquired a stake in Cheney Brothers to support its expansion and growth. |
| RWB Group AG | Fund Investor | Company | A private equity manager with various funds that benefited from the investment in Cheney Brothers. |