CD&R Scales Back €2.7 Billion Merger Deal as Economic Woes Bite

It was set to be a slam-dunk €2.7 billion success story, bucking an otherwise challenging period for Europe’s dealmakers.

But now the souring economic outlook has forced private equity firm Clayton, Dubilier & Rice LLC to substantially scale down its bid to acquire and merge two facility management companies, in a sign of the challenges to come for mergers and acquisitions next year.

The enterprise value of the deal and the financing have been cut in half compared to what was originally planned. The revised transaction that includes Atalian SASU’s better-performing units — together with British facilities management company OCS ...