American Industrial Partners has signed an agreement to acquire KMT Group, a manufacturer of ultrahigh-pressure pumps, from Nordstjernan at an enterprise value of $147.5 million, representing a 6.4x multiple of adjusted 2012 EBITDA.
KMT is a developer, manufacturer and supplier of ultrahigh-pressure pumps and associated robotic systems which utilize this technology. The company’s products are used in industrial manufacturing, surface preparation, and food processing applications. KMT has annual revenues of approximately $160 million. KMT’s products are available in more than 60 countries and are manufactured at facilities in the United States, Sweden and China. The company was founded in 1954 and is headquartered in Baxter Springs, KS (www.kmtgroup.com).
“KMT is an engineering-centric business with cutting edge technology, highly respected brands, a large and loyal customer base, and an exciting new product development pipeline. American Industrial Partners looks forward to partnering with management in the years to come in order to accelerate profitable growth by assisting in areas such as technology development, program management, quality systems, and technical service/field support. We look forward to joining this exciting industry in partnership with KMT management,” said Richard Hoffman, Partner at American Industrial Partners.
American Industrial Partners invests in North American headquartered industrial companies with sales ranging from $100 million to $500 million. The firm was founded in 1989 and is currently managing more than $1.1 billion in equity capital. American Industrial Partners is based in New York (www.americanindustrial.com).
Nordstjernan is a family-controlled investment company based in Stockholm (www.nordstjernan.se).
© 2013 PEPD • Private Equity’s Leading News Magazine • 8-16-13