former chief executive officer of
Procter & Gamble Co.
, is joining Clayton Dubilier & Rice LLC as a senior operating adviser, officials at the private-equity firm said.
Mr. Taylor stepped down as CEO of the consumer-products company last November after a career of more than 40 years there but remained executive chairman. He will cede that role to his successor as CEO,
before starting at CD&R on July 1.
Based in New York, CD&R has long employed a model of pairing investing professionals with experts in running companies—known as operating partners or advisers—to buy businesses and attempt to improve their performances.
Mr. Taylor will join a roster of top executives who have come to the private-equity firm from American companies, including
previously group world-wide chairman at
Operating partners have been known to step in and lead portfolio companies on an interim basis, such as a recent stint by Mr. Compton at the helm of the CD&R-owned pet-products maker, Radio Systems Corp.
CD&R, which manages about $57 billion, is in the process of trying to raise at least $20 billion for its next fund, The Wall Street Journal has reported.
The firm was founded in 1978 by Joseph Rice, Martin Dubilier and Eugene Clayton. Mr. Rice had come from investment banking, while Messrs. Dubilier and Clayton had worked as corporate executives and management consultants. The three, according to the firm, determined that finding a way to blend their collective skills was more important than financial engineering when it came to achieving sustainable performance in the buyout business.
Today the firm gets over 80% of its returns from operating improvements at its portfolio companies, with the remainder from adjusting capital structures and other factors, said CD&R Chief Executive
Mr. Taylor, 64 years old, during his tenure at P&G, held leadership roles in operations and marketing, managed manufacturing sites and led various consumer brands across North America, Europe and Asia.
He took over as CEO in 2015, when P&G was struggling to expand in the postrecession years. Sales initially slowed even more, leading to a proxy fight with the activist investor
who for a time had a seat on the company’s board.
Mr. Taylor doubled down on P&G’s stalwart brands, which include Tide and Gillette, ignoring those who said the company should lessen its reliance on them and invest in e-commerce startups. His strategy worked, particularly during the pandemic, when consumers flocked to the best-known names.
Mr. Taylor said he hadn’t initially considered a move to private equity but was won over by the CD&R model.
“This focus on operational excellence and the value that they put on someone with my background surprised me a bit,” he said. “It’s the power of diverse thinking, and they understand that.”
Write to Miriam Gottfried at Miriam.Gottfried@wsj.com
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Procter & Gamble Ex-CEO David Taylor to Join Private-Equity Firm CD&R Source link Procter & Gamble Ex-CEO David Taylor to Join Private-Equity Firm CD&R