KKR Closes Buy of Industrial Physics
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KKR Closes Buy of Industrial Physics

Latest acquisition is part of KKR's 2023 investment strategy to invest up to $250 million in businesses operating in the testing, inspection, and certification industry

Industrial Physics manufactures materials testing instruments that are used to measure the physical and analytical properties of plastics, barrier films, paper, pulp, foil, ink, coatings and cans.

SOURCE: Industrial Physics

KKR has closed its acquisition of Industrial Physics, a maker of testing and measurement instruments, from Union Park Capital.

KKR is acquiring Industrial Physics through its Ascendant Fund which invests in North America-based middle market companies and is part of a KKR investment strategy launched in February 2023 to invest up to $250 million in businesses operating in the testing, inspection, and certification (TIC) industry.

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’s instruments 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.

Source: Industrial Physics

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.

Boston-headquartered Industrial Physics 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.

In tandem with the close of this acquisition, Barry Lyon has been named the new chief executive officer  of Industrial Physics and Lance Reisman has assumed the role of chairman of the board. Mr. Lyon succeeds Jim Neville, who has led the company since 2016.

Mr. Lyon joins Industrial Physics after spending more than fifteen years at Washington DC-headquartered and global conglomerate Danaher Corporation, most recently as the president of microbiology for Beckman Coulter, a California-based clinical diagnostics company and a Danaher operating subsidiary.

“I am honored to join Industrial Physics and work alongside Lance and the rest of the talented team at Industrial Physics,” said Mr. Lyon. “Industrial Physics has created an impressive global portfolio of leading brands and I am excited to build upon this foundation to better serve our customers and drive future growth, both organically and through acquisitions. I am enthused to work with KKR as a strategic partner and to lead the roll out of a broad-based equity plan in which all Industrial Physics colleagues will become owners of the business.”

Mr. Reisman is an executive advisor to KKR and currently serves as a board member at Flow Control Group and as chairman of the board at GeoStabilization International. Earlier in his career he was with Danaher, most recently as a group executive and vice president responsible for Danaher’s water quality 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.

Union Park, the seller of Industrial Physics, invests from $10 million to $50 million in North American and European industrial technology companies with revenues from $10 million to $75 million. Add-on acquisitions for the firm’s platform companies will typically have revenues from $1 million to $50 million. Union Park is headquartered in Boston.

© 2023 Private Equity Professional | August 2, 2023

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