Madison Dearborn Partners LLC, the manager of a $6.5 billion leveraged buyout fund, agreed to buy CDW Corp. for about $7.3 billion for several reasons:
1. For inorganic and organic growth: CDW's sales may rise 16 percent this year, double the 2006 rate. Average daily sales jumped 29 percent in April from the same month a year earlier. CDW was reorganized by adding more salespeople, opening a new facility in Nevada and purchasing Berbee Information Networks Corp. to expand in areas such as health care.
2. To gain a company with growing profit margins as customers reduce the number of suppliers
3. To tap cash flow generated by the computer reseller.
Madison Dearborn also participated in the buyout of Cinemark Holdings Inc., the movie- theater chain that sold shares to the public earlier this year.
Growth, profit and cash feed on each other for even more revenue.
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