Palladium Equity Partners has acquired Kymera International, a maker of specialty materials used in the metallurgical, chemical and industrial processes industries, from Platinum Equity.
Kymera’s specialty materials are produced as powders, pastes, ingots and granules and include aluminum and aluminum alloys, copper and copper alloys, copper oxide, lead, magnesium, tin, and zinc in a range of shapes and particle sizes from coarse to ultrafine. The company, with more than 1,500 customers, has manufacturing plants in seven countries across the US, Australia, Europe, and Asia. Kymera is led by CEO Barton White and is headquartered in Research Triangle Park, NC (www.kymerainternational.com).
The operations of Kymera include ACuPowder International, ECKA Granules and SCM Metal Products. Platinum first invested in the business in October 2008 and its operations were rebranded under the Kymera name in February 2017. Under Platinum’s ownership, Kymera grew from two copper powder plants to become one of the largest manufacturers of specialty aluminum and copper powders worldwide.
Kymera’s operating units have a long history and have been producing metal powders for over 100 years. ECKA Granules can trace its roots back to 1876 and it opened its first metal powder facility in 1918; ACuPowder was founded in 1916 as The Metals Disintegrating Company to manufacture metal powders; and SCM Metal Products was founded as Glidden Metals Company, a maker of copper powders, in the early 1930s and was acquired by Smith-Corona Marchant (SCM) a typewriter manufacturer in 1967.
“Kymera’s success reflects the culmination of a strategy to acquire multiple specialty material companies across the globe and integrate them operationally under one brand,” said Platinum Equity Partner Jacob Kotzubei. “Starting with the carve-out of SCM Metal Products, we partnered with management to build on the platform over time, and supported the company’s organic growth through investments in R&D and deployed our M&A&O resources to source and execute three add-on acquisitions. The result is a high-performing, well-diversified business with a dynamic leadership team led by Barton White.” Platinum’s “M&A&O” strategy refers to the firm’s active integration of traditional M&A with operational expertise.
Palladium is acquiring Kymera in partnership with the company’s management team. The growth strategy for the business includes expansion of the company’s product portfolio as well as pursuing complementary acquisitions in the specialty materials industry. “We are proud of the results we have achieved under Platinum, and thank them for their support over their ownership period,” said Mr. White. “We look forward to working with Palladium and leveraging their industry experience to accelerate our expansion plans.”
“Barton and the rest of the Kymera leadership team have built a leading specialty materials manufacturer with a reputation for delivering excellent service, deep technical expertise, and complete reliability to its customers,” said Adam Shebitz, a Managing Director of Palladium. “We are excited about Kymera’s next chapter of growth.”
Palladium invests from $50 million to $150 million of equity in companies that have $10 million to $75 million of EBITDA. Sectors of interest include food and consumer, services, industrials, and healthcare. Palladium has a focus on companies that operate in the US Hispanic market. Since its founding in 1997, Palladium has invested over $1.9 billion of capital in more than 31 platform investments and completed over 100 add-on acquisitions. The firm is based in New York (www.palladiumequity.com).
Platinum Equity invests in a range of industries including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, and telecommunications. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion buyout fund which closed in March 2017 and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund which closed in July 2018. Platinum Equity has completed more than 200 acquisitions since its founding in 1995. The firm is headquartered in Beverly Hills (www.platinumequity.com).
Lazard Middle Market was the financial advisor to Kymera and KeyBanc Capital Markets was the financial advisor to Palladium.
© 2018 Private Equity Professional | October 11, 2018