KKR has agreed to acquire Industrial Physics, a manufacturer of testing and measurement instruments, from Union Park Capital.
Industrial Physics is a holding company created by Union Park in 2014 to build a platform of small and mid-sized businesses that make and market materials and physical testing instrumentation. The company manufactures materials testing instruments that are used to measure the physical and analytical properties of plastics, barrier films, paper, pulp, foil, ink, coatings, corrugated materials, cans, medical devices, and consumer electronic products.
Within the beverage industry, the company’s products are used for seam inspection, can inspection, label inspection, code reading, and permeation analysis. Industrial Physics’ instruments are also used in the food packaging sector for crush, burst, peel, and tack testing.
Industrial Physics, led by CEO Jim Neville and headquartered in Boston, goes to market under more than a dozen brands including Eagle Vision Systems, Messmer Büchel, OxySense, Ray-Ran, Technidyne, Testing Machines, TM Electronics and United Testing Systems.
“At Industrial Physics, we are excited to work with KKR as we enter this new phase of our growth. KKR supports our employee-first culture and shares our vision for building a scaled testing and measurement platform that continually invests in growth and innovation to even better serve the needs of customers around the world,” said Mr. Neville.
In February 2023, KKR announced that it would invest up to $250 million in a new strategy to acquire and build businesses in the testing, inspection, and certification (TIC) industry. KKR is making this commitment through its Ascendant Fund which invests in North America-based middle market companies that operate in the information technology, healthcare, textile, financial services, consumer products and services, and media and information services sectors. The Ascendant Fund is part of KKR’s broader Americas private equity platform.
“Testing and measurement is an attractive market that is poised to continue growing as focus on product quality and supply chain transparency intensifies,” said Brandon Brahm, a partner at KKR and Co-Head of KKR’s Ascendant strategy. “We are thrilled to invest in Industrial Physics, a leader in this space, which has built an impressive portfolio of brands used by many of the world’s leading manufacturers. We look forward to working with the Industrial Physics team and helping the company reach new heights through organic growth and M&A.”
KKR (NYSE: KKR) makes private equity, fixed income, and other investments in companies in North America, Europe, Asia, and the Middle East. KKR was founded in 1976 and in addition to its New York headquarters has offices in 19 cities around the world.
This transaction is expected to close during the third quarter of 2023.
© 2023 Private Equity Professional | May 17, 2023
