Nordstjernan said Friday that it has agreed to sell KMT Group to American Industrial Partners. The sale is valued at $147.5 million which Nordstjernan says represents a 6.4x multiple of adjusted 2012 EBITDA. Baxter Springs, Kansas-based KMT makes and designs ultrahigh-pressure pump technology.
BAXTER SPRINGS, Kan., Aug. 15, 2013 /PRNewswire/ — Nordstjernan has signed a definitive agreement to sell 100% of the shares in KMT Group (“KMT”) to American Industrial Partners (“AIP”). KMT is a global leader in the design and manufacture of products utilizing ultrahigh-pressure (“UHP”) pump technology in industrial manufacturing, surface preparation, and food processing applications.
With its roots dating back to 1954, KMT is a leading global developer, manufacturer and supplier of UHP pumps and associated robotic systems which utilize this technology. Headquartered in Baxter Springs, Kansas, KMT has more than 400 employees and a turnover of approximately $160 million. Its products are available in more than 60 countries and are manufactured at facilities in the United States, Sweden and China. AIP will acquire KMT for an enterprise value of $147.5 million, representing a 6.4x multiple of adjusted 2012 EBITDA.
Tomas Billing, CEO of Nordstjernan comments: “Nordstjernan first invested in KMT in 1999 when it was listed on the Stockholm Stock Exchange. In 2003 we guaranteed the new share issuance that enabled the purchase of the ultrahigh-pressure pump business, which today constitutes KMT, and we took the company private in 2007. Since 2003, the UHP pump business has grown on average by 8% organically per year. It has been a great journey and we would like to thank the management team and KMT employees for their contributions and dedicated work. We wish KMT and AIP the best of luck for the future.”
Richard Hoffman, Partner at AIP comments: “KMT is an engineering-centric business with cutting edge technology, highly respected brands, a large and loyal customer base, and an exciting new product development pipeline. AIP looks forward to partnering with management in the years to come in order to accelerate profitable growth by assisting in areas such as technology development, program management, quality systems, and technical service/field support. We look forward to joining this exciting industry in partnership with KMT management.”
Nordstjernan is a family-controlled investment company that creates growth in value through long-term and active ownership of Nordic companies. Investments are to be long-term. More information on Nordstjernan is available at www.nordstjernan.se.
American Industrial Partners (“AIP”) is an operationally oriented middle-market private equity firm that makes control investments in North American-based industrial businesses serving domestic and global markets. More information on AIP is available at www.americanindustrial.com.
KMT Group (“KMT”) is a leading manufacturer of ultrahigh-pressure pump technology through its business area KMT Waterjet and robotic systems which utilize this technology through its business area KMT Robotic Solutions. More information is available at www.kmtwaterjet.com and www.kmtrobotic.com.