Inverness Graham has acquired KICTeam, a maker of consumable products used to clean and maintain electronic devices.
KICTeam specializes in the manufacture of cleaning tools, technologies, and agents that are used to clean technical devices such as electronic card readers, ATMs, and point POS devices that are involved in payment, currency, image processing, and printing.
During their operation, technical devices encounter dirt and contaminants from a variety of sources, such as dust and dirt from the environment, oils and fingerprints from skin, and ink and adhesive from media. Without proper maintenance, these devices are subject to decreased performance, are more prone to breakdown, and will have a shorter lifetime.
KICTeam’s customers are active in the banking, retail, healthcare, convenience store, and gaming sectors and include OEMs, service providers, resellers, consumable suppliers, and end-users. The company is led by CEO Ian McCormick and is headquartered in Auburn, Maine.
The buy of KICTeam is the first for the firm’s fourth fund, Inverness Graham IV LP, which closed at its hard cap with $415 million of capital in July 2019. Inverness Graham’s earlier fund closed at $283 million in June 2015.
Inverness Graham is seeking add-on acquisitions for its new platform that have more than $4 million in revenues and provide proprietary cleaning products used in the medical device, pharmaceutical, aerospace, semiconductor, and other specialty end markets.
According to a source familiar with this transaction, Twin Brook Capital Partners, the middle-market direct lending arm of Angelo Gordon, served as administrative agent on debt financing to support the buy of KICTeam.
Chicago-based Twin Brook focuses on loans to private equity-owned companies with EBITDA between $3 million and $50 million, with an emphasis on companies with $25 million of EBITDA and below. The firm targets senior financing opportunities up to $200 million, with hold sizes across the platform ranging from $25 million up to $150 million. Twin Brook’s products include opportunistic investments in second lien, mezzanine, and equity co-investments.
Inverness Graham manages $500 million in capital and was formed by senior executives of the Graham Group, an industrial and investment concern with interests in plastics, packaging, recycling, building products and outsourced manufacturing. The firm is based near Philadelphia in Newtown Square, Pennsylvania.
KICTeam was acquired from Enefco, a portfolio company of Argosy Private Equity.
CIBC Cleary Gull was the financial advisor to KICTeam on this transaction.
Private Equity Professional | May 28, 2020
