Pfingsten Partners has acquired Kith Kitchens, a manufacturer of kitchen and bath cabinetry. The buy of Kith Kitchens is the second platform investment for Pfingsten’s $382 million fifth fund which closed in March 2016.
Kith Kitchens is a maker of semi-custom framed and frameless kitchen and bath cabinets under the Kith and Eudora brand names. The company’s products are sold mainly in the southeastern US through a network of sales representatives and dealers. Kith Kitchens is led by its president Allen “Bo” Knight. The company was founded in 1998 and is headquartered 70 miles northwest of Birmingham in Haleyville, AL (www.kithkitchens.com).
“We are eager to partner with Pfingsten and look forward to the future,” said Mr. Knight. “Pfingsten’s operating capability, conservative capital structure and prior experience in the cabinet industry will provide our company with additional resources and capital to embark on our next phase of growth.”
In June 1998, Pfingsten acquired Norcraft Companies, a manufacturer of framed and frameless kitchen and bathroom cabinetry, based in Eagan, MN. Norcraft was sold in October 2003 to private equity firm Saunders Karp & Megrue. During its ownership of Norcraft, Pfingsten tripled revenue and experienced more than a four-fold increase in annual profit. These increases came from both organic growth and three add-on acquisitions. At the time of the sale to Saunders Karp, Norcraft was the fifth largest cabinet manufacturing business in North America.
“The Kith Kitchens team has built an outstanding business focused on semi-custom cabinets with high quality finishes and a wide variety of customizable options,” said Scott Finegan, Managing Director, Pfingsten. “The company is well-positioned to capitalize on continued growth in the southeastern housing market through its customer-centric approach and strong value proposition.”
Pfingsten invests in middle market manufacturing, distribution and business services companies that have transaction values ranging from $15 million to $100 million and EBITDA between $3 million and $12 million. Since founding in 1989, Pfingsten has acquired 112 such companies through five funds with total commitments of $1.3 billion. The firm is based in Chicago with additional representative offices in India and China (www.pfingsten.com).
Birmingham, AL-based investment bank Arlington Capital Advisors (www.arlingtoncapitaladvisors.com) served as financial advisor to Kith Kitchens. Paul Hastings (www.paulhastings.com) served as legal advisor to Pfingsten.
© 2016 Private Equity Professional • 6-8-16
