Monomoy Capital Partners has completed the sale of Katun Corporation to Taiwan-based General Plastic Industrial Co.
Katun is a supplier of OEM-compatible imaging supplies, photoreceptors, parts and accessories for single and multi-function copiers, printers, and other imaging devices. The company has approximately 5,300 SKUs and sells to more than 11,500 customers in over 130 countries throughout the world. Katun is headquartered in Minneapolis and operates seven distribution facilities in the United States and Europe; and maintains over 20 sales and customer service offices in North America, Europe, Latin America, the Middle East and Africa (www.katun.com).
Since acquiring Katun in September 2008 through its first fund, Monomoy Capital Partners LP, the firm has consolidated the company’s distribution centers and sales offices, improved product mix and introduced new products. In November 2010, the company expanded its printer products with the acquisition of the assets of Media Science’s toner business including inventory, fixed assets, and intangibles for $11 million. Also during Monomoy’s ownership, the company introduced a web-based selling program and improved its working capital requirements through reductions in inventory.
“Monomoy has been an instrumental partner throughout the transformation of Katun,” said Robert Moore, Katun’s President and Chief Executive Officer. “Monomoy’s dedicated team of investment and operating professionals helped Katun create a strong, profitable business and set a new standard for excellence throughout the company. Monomoy gave us the support and resources necessary to execute a winning global strategy and create substantial value for our shareholders.”
Monomoy makes control investments of debt and equity in companies with at least $150 million in sales, $15 million of EBITDA, and enterprise values of up to $500 million. Sectors of interest include industrial, distribution, and consumer. Monomoy is currently investing out of its third fund, Monomoy Capital Partners III LP, with $767 million of committed capital. The firm is headquartered in New York (www.mcpfunds.com).
“Katun is a great example of how Monomoy creates value,” said Justin Hillenbrand, Co-Chief Executive Officer of Monomoy. “In partnership with management, we were able to improve the business through the Great Recession by eliminating low margin products, exiting unprofitable geographies, streamlining corporate overhead costs, improving efficiency at Katun’s distribution centers, driving profitable growth and positioning the business for a successful exit.”
“Over our ownership period, we helped transform this corporate carve-out into a resilient, disciplined design and distribution business through challenging market dynamics,” said Jaime McKenzie, a Monomoy Director. “We leveraged Monomoy’s operationally-focused strategy to drive free cash flow and stable earnings and successfully positioned Katun for continued growth under the ownership of a strategic buyer. Katun is a premier provider of aftermarket imaging supplies with a world-class management team, and we wish them all the best.”
General Plastic Industrial Co., the buyer of Katun, is a Taiwan-based company that manufactures and distributes toner cartridges. The company is publicly-traded on the on Taiwan Stock Exchange (TSE: 6128.TW) and is headquartered in Taichung (www.gpi.com.tw).
Lincoln International was the financial advisor to Katun on this transaction.
© 2018 Private Equity Professional | January 9, 2018
