KRG Capital Partners has acquired Palladium Energy and merged the company into its existing portfolio company ICCNexergy, which it acquired in March 2014 from private equity firm Inverness Graham.
According to KRG, this merger creates one of the world’s largest portable power providers to the commercial, industrial, medical, military, and government sectors. The merged company will have more than 300 engineers and a manufacturing and supply chain footprint across North America, Asia, South America and Europe. KRG will be rebranding the combined company in the next few months.
ICCNexergy is a developer and manufacturer of rechargeable power systems that integrate lithium-ion battery packs, battery chargers, docking stations and power supplies. The company’s customers include major OEMs in the commercial, industrial, medical and military markets. ICCNexergy was founded in 1967 and has approximately 1,500 employees and 300,000 square feet of manufacturing space in the United States, China and Mexico. The company is headquartered in the Chicago suburb of Westchester, IL (www.iccnexergy.com).
Palladium Energy is a provider of battery packs, power supplies and electromechanical assemblies that are used in cell phones, personal navigation devices, medical devices and data storage equipment in the medical, military, commercial, industrial and consumer electronics industries. Palladium Energy was formed by Marlin Equity Partners in July 2009 when it acquired the battery systems business of Tyco Electronics. Palladium is headquartered in the Chicago suburb of Woodridge, IL and has manufacturing facilities in the United States, Brazil and China (www.palladiumenergy.com).
“ICCNexergy’s merger with Palladium is transformative and consistent with the company’s strategic plan to become a leader in portable power industry,” said Stew Fisher, Managing Director of KRG. “The combination with Palladium will enhance product design, development and production capabilities and will enable us to better serve our global customers.
KRG Capital specializes in acquiring and recapitalizing unique and profitable middle-market companies that have from $10 million to $100 million or more of EBITDA. Founded in 1996, KRG has $4.3 billion of capital under management and is based in Denver (www.krgcapital.com). The acquisition of Palladium Energy is the 217thinvestment (46 platforms and 171 add-ons) that KRG has completed since its founding.
Golub Capital acted as Administrative Agent, Sole Bookrunner and Co-Lead Arranger on the financing along with Ally Bank as Co-Lead Arranger and Syndication Agent. NewStar Financial was the Documentation Agent. Jefferies acted as the sole financial advisor to Palladium Energy.
2015 PEPD • Private Equity’s Leading News Magazine • 5-5-15
