Gryphon Investors has completed the sale of Kano Laboratories, a producer of branded oils and lubricants that it acquired in November 2020, to L Squared Capital Partners.
Kano Laboratories specializes in products designed for industrial maintenance, repair, and operations (MRO). The company was founded in 1939 and is headquartered in Nashville.
Kano’s flagship Kroil brand is widely used to loosen rusted or corroded bolts, valves, and mechanical parts, reducing downtime in industrial facilities. Additional products include AeroKroil, a quick-penetrating aerosol lubricant; Microil, designed for precision equipment; and Penephite, a high-performance graphite lubricant for extreme environments. The company also offers Super Lube synthetic lubricants that are used in applications requiring food-grade safety such as pharmaceutical and food processing equipment.
Kano acquired the Super Lube brand through its acquisition of Synco Chemical Corporation in January 2024.
“Our partnership with Gryphon allowed us to transform the business as we scaled and solidified our place in the industrial chemicals market,” said Mark Klein, the CEO of Kano. “The collaboration with Gryphon’s operating resources enabled us to develop a distinctive growth strategy, including successfully entering new trade channels and markets.”
“We are proud to have built on the impressive legacy of the 85-year-old Kroil brand,” said Keith Stimson, a partner and co-head of Gryphon’s Heritage Group. “During our four-year hold, we transformed Kano into a scalable platform well-positioned for future growth.”
Newport Beach, California-based L Squared invests from $50 million to $125 million of equity in North America-based companies that have revenues of $20 million to $125 million and EBITDA of $5 million to $30 million. Sectors of interest include tech-enabled services and software, education technology, and industrial technology and services.
L Squared is led by Robert Healy, Jeff Farrero, Sean Barrette, Randall Hunt and Adam Kimura, all of whom worked together at Chicago Growth Partners prior to founding L Squared in July 2014. In November 2023, L Squared held the final closing of its fourth fund with $840 million of capital.
“We are excited to partner with the management team at Kano,” said Mr. Hunt. “Kano has built the infrastructure to be a preferred partner for niche industrial chemical brands seeking to scale their reach.”
San Francisco-based Gryphon makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $50 million to $500 million of capital in companies with enterprise values ranging from $100 million to $600 million and EBITDA of up to $80 million. Sectors of interest include business services, consumer products and services, healthcare, industrial growth, and software.
© 2024 Private Equity Professional | December 20, 2024
