David Taylor, former CEO of Procter & Gamble Co.
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Clayton is joining Dubilier & Rice LLC as chief operating consultant, according to private equity firm officials.
Mr. Taylor resigned last November as chief executive of the consumer goods company, where he has a career spanning more than 40 years, but remains executive chairman. Jon Moeller will step down as CEO before starting on CD & R on July 1st.
Located in New York City, CD&R has long used a model to match investment professionals with business-oriented experts (known as operating partners or advisors) to buy businesses and try to improve their performance.
Mr. Taylor will join the private equity firm’s list of CEOs from U.S. companies, including former John Compton PepsiCo. Inc.
president, and Sandra Peterson, former world president of Johnson & Johnson.
The operating partners are known to be temporarily involved in the management of the portfolio, for example by Mr. Compton under the guidance of the manufacturer of pet products owned by Radio Systems Corp. CD & R.
CD&R, which manages about $ 57 billion, is trying to raise at least $ 20 billion for its next fund, The Wall Street Journal reported.
The company was founded in 1978 by Joseph Rice, Martin Dubilier and Eugene Clayton. Mr. Rice came from the investment bank, while Mr. Dubilier and Mr. Clayton worked as company directors and management consultants. All three, according to the company, determined that finding a way to combine their collective capabilities was more important than financial engineering when it came to making a lasting profit in the buying business.
Today, the company earns more than 80 percent of its revenue from operating improvements in its portfolio companies, with the remainder adjusted for capital structures and other factors, said CD & R CEO Nate Sleeper.
Mr. Taylor, 64, was in P&G when he was a leader in operations and marketing, managing manufacturing sites, and directing various consumer brands in North America, Europe, and Asia.
He took over as CEO in 2015 as P&G struggled to expand in the post-recession years. Sales initially slowed even further, prompting a proxy fight with activist investor Nelson Peltz, who temporarily held a seat on the company’s board.
Mr. Taylor doubled down on P & G’s strong brands, including Tide and Gillette, ignoring their confidence in the company and investing in e-commerce startups. His strategy worked, especially in the pandemic, when consumers approached the most popular names.
Mr Taylor said he initially did not consider the move to private equity, but that the CD&R model won.
“I was a little surprised at the operational excellence and the value they place on someone who is of my origin,” he said. “It’s the power of multiple thinking, and they understand that.”
Write Miriam Gottfried at Miriam.Gottfried@wsj.com
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Former Procter & Gamble CEO David Taylor will join the private equity firm CD&R
Source link Former Procter & Gamble CEO David Taylor will join the private equity firm CD&R