Three Firms Serve Up BDT Capital’s $3.7 Billion Deal for Weber

Cravath Swaine & Moore is advising BDT Capital Partners on the proposed take-private acquisition of barbecue grill maker Weber Inc., a deal that implies a $3.7 billion enterprise value for the company.

Davis Polk & Wardwell is counseling Weber on the transaction, which calls for BDT to pay $8.05 a share to acquire all outstanding shares of the company it does not already own. As of October, BDT Capital Partners already owned a 48% stake in Weber, according to Bloomberg News.

The share price represents a premium of 60% to the Weber share’s closing price on Oct. 24, the last trading day before BDT’s offer became public, according to a statement.

Sullivan & Cromwell is advising a special committee of Weber’s board of directors that unanimously recommended that the board accept the offer.

Upon completion of the transaction, expected in 2023’s first half, Weber will become a privately held company majority owned by investment funds managed by BDT.

In connection with the transaction, BDT-managed investment funds will provide Weber with an additional unsecured loan facility in the aggregate principal amount of $350 million. Weber plans to use the loan funds for “general corporate purposes,” including paying down debt, the statement said.

Cravath said its team advising BDT Capital is led by corporate partners David J. Perkins and Aaron M. Gruber and includes associates Maurio A. Fiore, Christopher M. Tierney and Glory P. James, among others.