Focus Financial Mulls $4B Offer From PE Firm

Focus Financial Partners said early Thursday that it signed an exclusivity agreement with private investment firm Clayton Dubilier & Rice that gives CD&R a limited period of time to discuss and settle the terms by which it might acquire Focus and take it private for $53 per share in cash.

According to Focus — which is led by Rudy Adolf — the suggested price of $53 per share represents a 36% premium to its 60-day volume-weighted average price as of Wednesday’s close and a 48% premium to its closing stock price on Dec. 28, 2022.

The firm, which staged its initial public offering in July 2018, will no longer be a publicly traded company if such a transaction is consummated. Its shares, which trade under the ticker DOCS, were up roughly 8% at nearly $50 per share as of 3 p.m. ET Thursday.

On Nov. 1, Focus’ board of directors formed a committee to review CD&R’s initial nonbinding offer and to explore alternative deals. The committee told its financial advisors “to broaden their outreach and contact other potential bidders regarding interest in a definitive transaction” on Dec. 28, the firm explained in a press release.

CD&R recently told Focus that its latest nonbinding offer of $53 per share represented its “best and final” offer, Focus said, and that this offer was submitted “with the understanding that there would be no further price negotiations.”