KPS sells IES platform in three parts and reaps 3x return

KPS Capital Partners LP, which just finished fundraising, exited International Equipment Solutions after eight years.

Angeles Equity Partners said Tuesday, Nov. 5, that it acquired Crenlo Cab Products LLC. Crenlo was the remaining unit of IES that KPS still owned.

With the sale, KPS made 3x its money on its overall investment in IES, a source said. The transaction also means the New York private equity firm has sold its last Fund III holding.

KPS’ investment in IES dates to September 2011 when it formed the Oak Brook, Illinois, platform to buy Crenlo and Paladin. Crenlo, of Rochester, Minnesota, makes operator cabs and roll-over protective structures for OEM manufacturers. Paladin Brands, of Cedar Rapids, Iowa, designs and makes attachment tools for heavy and light equipment used in sectors including construction and agriculture.

Dover Corp, the seller, said in its 2011 annual report that it received $300.2 million in cash proceeds from the sale of Crenlo and Paladin. The 2011 deal included brands Genesis and Pengo, a KPS spokesman said. The investment came from KPS Fund III, which raised $1.2 billion in 2007.

KPS sold IES in three separate transactions. Stanley Black & Decker agreed in August 2018 to buy International Equipment Solutions Attachments Group for $690 million. The deal, which closed in March, included Paladin and Pengo. KPS retained ownership of Genesis and Crenlo.

In May, KPS sold Genesis to NPK Construction. Financial terms weren’t announced.

Angeles Equity said Tuesday it acquired Crenlo Cab and merged it with Worthington Industries Engineered Cabs.

The sale comes just weeks since KPS closed closed its fifth flagship fund on $6.12 billion and its first-ever mid-cap fund on just over $1 billion, Buyouts reported in October. KPS Special Situations Fund V beat its original $5 billion target, while KPS Mid-Cap Fund beat its $750 million goal.

Action Item: See KPS most recent form ADV here.