KKR to take Chase Corp private for $1.3bn; TT Capital Partners fights loneliness

KKR to acquire specialty chemicals firm Chase Corp for $1.3 billion.

Good morning dealmakers, thank goodness it’s Friday!

It’s Obey Martin Manayiti here with the Wire.

Earlier this morning, KKR announced a big deal – an unusual occurrence for a summer Friday! KKR will be taking Chase Corporation private for $1.3 billion. I’ll share details below.

I’ll also take a look at TT Capital Partners’ majority investment in Pyx Health, a provider of technology that aims to help people who are lonely.

And today we are capping off the week with a look at private equity-backed deals in medical devices, a hotbed of activity this year.

Critical applications
KKR has agreed to acquire Chase Corporation (NYSE American: CCF), a global manufacturer of protective materials for high-reliability applications across diverse market sectors.

The all-cash transaction is valued at approximately $1.3 billion, including the assumption of debt. KKR is making its investment in Chase through its North America Fund XIII.
Based in Westwood, Massachusetts, Chase operates manufacturing facilities in the US, Europe, and Asia.

Products made by the company include adhesives, sealants and additives used in a wide range of sectors, such as construction and electronics.

“Over its nearly 80-year history, Chase has established itself as a leader in highly-engineered protective materials and built a portfolio of trusted brands, while delivering outstanding customer service,” said Josh Weisenbeck, a KKR partner who leads the firm’s Industrials investment team. “We look forward to supporting Chase on its next phase of growth through developing exciting new products, executing upon strategic acquisitions, and serving customers in growing end-markets, including critical applications in electronics, fiber optics and electric grid infrastructure.”

Following the closing of the transaction expected in the fourth quarter, KKR will support Chase in creating an equity ownership program for employees, a hallmark of KKR’s investment strategy.

Fighting the loneliness epidemic
TT Capital Partners yesterday announced a majority investment in Pyx Health, a Tucson, Arizona-based provider of technology that reduces loneliness and social isolation.
The company’s app-based technology, paired with timely human interventions, aims to improve patient and member outcomes in vulnerable populations, reduce financial burdens on the healthcare system, and promote health equity, said the company in a statement.

Pyx Health was founded in 2017 and today serves more than 6 million covered lives, ages 13 to 102, in more than 70 markets across nearly 30 states, according to the company.

“Health plans are increasingly seeking ways to address loneliness and social determinants of health – and to manage costs for complex populations,” said Dawn Owens, TTCP Partner and CEO.

Medical devices
The US medical devices market size stood at $184.61 billion in 2022 and is projected to grow up to $192.78 billion this year, and to $291.04 billion by 2030, powered by a CAGR of 6.1 percent, according to Fortune Business Insights.

PE investors have been busy in this sector, buying and selling businesses that manufacture equipment for respiratory diseases, skin grafts, operations and procedures.

I rounded up seven deals announced this year.

Here are details on a couple of the deals:
Kidd & Company, an Old Greenwich, Connecticut-based family office, sold NextPhase Medical Devices to Arterex, which is backed by Investindustrial Growth fund. NextPhase is a maker of complex electromechanical devices, active implantable devices and single-use disposables for the North American market.

GEM Manufacturing, a portfolio company of CORE Industrial Partners, announced the acquisition of Coining Manufacturing and Precision Machine Products Inc, a Clifton, New Jersey-based provider of specialty stamping and machining services. “Coining and PMP offer differentiated, highly technical manufacturing capabilities and a long track record of working with customers in demanding, high-growth end markets to produce precision components for mission-critical applications,” said Matthew Puglisi, CORE partner.

That’s it for me today.

MK Flynn will be back with the Wire on Monday.

Have a nice weekend.