KPS Capital Partners has agreed to sell the attachments division of International Equipment Solutions (IES) to Stanley Black & Decker for $690 million.
The IES attachments division, with approximately $400 million in annual revenue, consists of the Paladin, Genesis and Pengo business units (IES Attachments). KPS is retaining ownership of the cabs division of IES which consists of the Crenlo, Emcor and Siac do Brasil brands (IES Cabs).
KPS formed International Equipment Solutions in September 2011 to acquire Paladin Brands and Crenlo LLC from publicly traded Dover Corporation (NYSE: DOV). Today, IES operates 14 manufacturing facilities and has 2,700 employees. The company is headquartered in Oak Brook, IL, (www.iesholdings.com).
Paladin is a provider of attachment tools for operator-driven equipment used in the construction, landscaping, agriculture, demolition, recycling, forestry and material handling sectors. Company-owned brands include Paladin, Genesis, and Pengo. KPS added to the IES Attachment operations with the July 2012 buy of CWS Industries, a manufacturer of tire manipulators, cable reelers, grapples, and buckets used in the mining, oil & gas, forestry and construction markets; and the March 2015 buy of Kodiak Mfg., a manufacturer of agriculture implements, including rotary cutters, angle and box blades, and tillers.
Crenlo is a provider of steel cabs and roll-over protective structures used in the construction, mining, agriculture and specialty truck markets. The business also provides electronic equipment cabinets under the Emcor brand to customers in the technology, aerospace, government and energy markets. KPS added to the IES Cab operations with the June 2012 buy of Siac do Brasil, a manufacturer of cab enclosures used by original equipment manufacturers in the construction, infrastructure, mining, forestry, and agriculture industries.
“Our investment in IES Attachments demonstrates our ability to identify the best businesses in their respective industries, and work with management to capitalize on each company’s strengths,” said Raquel Palmer, a Partner of KPS. “KPS, in partnership with management, successfully transformed IES Attachments from a non-core division of a large corporation into a thriving, highly profitable and growing standalone company. Under KPS’ ownership, IES Attachments completed two highly synergistic acquisitions, increased productivity, diversified its end-markets, expanded its product offering and implemented a culture of continuous improvement. IES Attachments is the latest example of KPS’ investment strategy achieving success across economic cycles, geographies and industries, and we take immense pride in the company’s accomplishments.
KPS Capital Partners is the manager of the KPS Special Situations Funds, a group of private equity funds with approximately $5.4 billion of assets under management that invests in restructurings, turnarounds and other special situations. KPS targets manufacturing and industrial companies that are going through a period of transition or experiencing operating or financial difficulties. The firm’s portfolio companies have aggregate annual revenues of approximately $6 billion, operate 113 manufacturing plants in 24 countries, and employ over 23,000 people worldwide. KPS Capital Partners is headquartered in New York (www.kpsfund.com).
Stanley Black & Decker (NYSE: SWK) is a manufacturer of industrial tools and household hardware and provider of security products and locks. The company is headquartered near Hartford in New Britain, CT (www.stanleyblackanddecker.com).
Deutsche Bank was the financial advisor to KPS and IES on this transaction.
© 2018 Private Equity Professional | August 7, 2018