Kohler has agreed to spin out its energy business, Kohler Energy, as a separate, independent business, to Platinum Equity with Kohler maintaining a minority interest in the business. This transaction has been valued at up to $3 billion.
Kohler Energy was formed by Kohler in April 2023 to consolidate its power businesses under one umbrella. The group operates through several segments including Home Energy (residential power generators), Industrial Energy Systems (generators, transfer switches, switchgear and controllers), and Powertrain Technologies (diesel, gasoline, alternative fuel, and marine engines).
Kohler Energy’s products are sold under the brands Power Systems, Home Energy, Kohler Uninterruptible Power, Clarke Energy, Heila Technologies, Curtis Instruments, and Kohler Engines.
Kohler Co. is best known for its plumbing products, but the company also manufactures furniture, cabinetry, tile, engines, and generators. The company was founded in 1873 by John Kohler and is headquartered 55 miles north of Milwaukee in Kohler, Wisconsin.
Post closing, which is expected to occur in the first half of 2024, Brian Melka, the current group president of Kohler Energy, will serve as CEO and David Kohler, the chairman and CEO of Kohler, will serve on Kohler Energy’s board of directors.
“Kohler has been an excellent steward of the business for more than 100 years. We will continue that vision with Platinum Equity, who shares the same values of quality, innovation, and operational excellence and is all-in on our growth journey. We expect to drive significant continued investment that increases value to our customers, team members, and shareholders,” said Mr. Melka. “I’m proud of what the team has done to build an industry-leading business, and we look forward to working with Platinum Equity to embark on our next phase of growth.”
“Today we took a bold and strategic move for the future of our company,” said Mr. Kohler. “Over the last 150 years, Kohler has embraced a relentless pursuit of providing exceptional products, services, and experiences for our customers. This important moment in our journey signifies our commitment to deepening the focus and investment in Kohler’s Kitchen & Bath and Hospitality businesses and continuing to drive growth within our respective industries. The timing is right due to the strength of the Energy business, which is driven by world-class products manufactured and sold by highly skilled associates. I look forward to supporting the Energy business through our continued investment along with my role on the board following the closing.”
“Kohler Energy has a well-deserved reputation for quality, innovation and engineering that dates back more than a century,” said Jacob Kotzubei, a co-president of Platinum Equity. “We appreciate Kohler’s confidence in our ability to build on that legacy and support the energy business’s continued growth and expansion as a standalone company. We have great respect for David and the Kohler leadership team and are proud to be their partners.”
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 has experience with carve-outs from large corporations including transactions with Ball Corporation, Caterpillar, Emerson Electric, Ingersoll Rand and Johnson & Johnson. Platinum was formed in 1995 by Tom Gores and is headquartered in Beverly Hills.
“The energy resilience business has outstanding leadership, strong technical capabilities and an opportunity to benefit from attractive tailwinds driving a sustained need for reliable power solutions in industrial, commercial, residential and equipment applications,” said Matthew Louie, a managing member of Platinum Equity. “We look forward to working with Brian and the management team to continue investing in the business and maximizing its potential.”
Goldman Sachs and William Blair are the financial advisors to Platinum Equity on this transaction and BDT & MSD Partners and BofA Securities are the financial advisors to Kohler. BDT & MSD was formed in January 2023 through the merger of BDT & Company, a merchant bank founded by Byron Trott and MSD Partners, an investment firm that manages the wealth of Michael Dell and his family.
© 2023 Private Equity Professional | November 8, 2023
H.I.G. Capital has sold Recochem, a provider of industrial and household fluids, to CapVest Partners. H.I.G. will maintain a minority equity interest in Recochem in partnership with CapVest.
“We see significant strategic opportunities for Recochem to capitalize on in the future and look forward to working with the Recochem management team to continue to realize the company’s tremendous potential,” said Timothy Colson, a partner at CapVest. “The company is well positioned to continue expanding both organically and through strategic mergers and acquisitions, which will drive growth and benefit its customers by making an even wider portfolio of high-quality products and solutions available to them.”
Publicly traded Central Garden & Pet has acquired TDBBS, a provider of natural pet chews and other pet treats, from Bregal Partners which acquired the business in January 2018 through its 2013 first fund.
Lower-middle-market investor Kian Capital Partners has hired Jimbo Izlar as a new vice president.
“Kian’s culture is a unique and compelling combination of humility, drive and curiosity that has enabled the team to be highly successful in executing on its investment mandate,” said Mr. Izlar. “The culture transcends the entire organization and positively impacts the firm’s key relationships with its portfolio companies and limited partners. There is deep alignment among the team, supporting one another to assess and achieve the best possible outcomes. The firm’s recent closing of KGP III with $400 million of funding is both a testament to the team’s culture and success. I am thrilled to join the team at such a pivotal time in the firm’s journey.”