Blackstone (BX) - Get Blackstone Group Inc. Class A Report announced Tuesday that it agreed to buy Chamberlain Group, owner of smart access products including garage device LiftMaster, for about $5 billion.
New York City-based Blackstone purchased the company from The Duchossois Group, a private equity firm. Blackstone is investing in Oak Brook, IL-based Chamberlain through its core private equity strategy, which invests in companies for longer periods than traditional private equity.
As part of the agreement, The Duchossois Group will retain “meaningful” ownership in the company and two seats on its Board of Directors.
Blackstone recently traded at $127.44, down 1.21%. But it has soared 93% in the last six months on strong financial performance
“Blackstone is expected to provide additional resources and expertise for Chamberlain Group to scale its software-based and connected services business into new markets,” the companies said.
The transaction is expected to close by the end of 2021.
In July, Blackstone reported second-quarter earnings that topped estimates. The firm also saw record appreciation in the value of its investments.
The New York-based company reported second-quarter net income of $1.31 billion, or $1.82 a share, compared with a profit of $568.3 million, or 81 cents a year ago. The firm reported revenue of $5.3 billion, more than double what it did a year ago.
Analysts polled by FactSet were expecting earnings of 79 cents a share on revenue of $1.84 billion.
"Strong investment performance and our culture of innovation have allowed us to meaningfully broaden the clients we serve, including individual investors and insurance companies, and the types of investments we can make," said CEO Stephen Schwarzman in a statement.