KPS Capital Partners LP said Aug. 7 that it agreed to sell the attachments division of International Equipment Solutions LLC to Stanley Black & Decker Inc for $690 million. The deal includes IES’ Paladin, Genesis and Pengo business units, along with all brands and operations within those units. KPS said it will retain ownership of cabs division of IES, consisting of IES’ Crenlo, Emcor and Siac do Brasil brands. IES Attachments makes attachment tools for off-highway applications. UPDATE: The sale of IES attachments is the fourth exit for KPS this year, a spokesman said. Paul, Weiss, Rifkind, Wharton and Garrison LLP served as legal counsel and Deutsche Bank acted financial adviser to KPS and IES with respect to the transaction.
New York, NY (August 7, 2018) — KPS Capital Partners, LP (“KPS”) announced today that it has signed a definitive agreement, through an affiliate, to sell the attachments division of International Equipment Solutions, LLC (“IES”), consisting of IES’ Paladin, Genesis and Pengo business units, along with all brands and operations within those units, (collectively, “IES Attachments” or the “Company”) to Stanley Black & Decker, Inc. for $690 million. KPS will retain ownership of the cabs division of IES, consisting of IES’ Crenlo, Emcor and Siac do Brasil brands (collectively, “IES Cabs”).
IES Attachments is a major independent manufacturer of attachment tools for off-highway applications. During KPS’ ownership, IES Attachments acquired and integrated CWS Industries (July 2012) and Kodiak (March 2015), and launched Paladin do Brasil (July 2013).
Raquel Palmer, a Partner of KPS, said, “Our investment in IES Attachments demonstrates our ability to identify the best businesses in their respective industries, and work with management to capitalize on each company’s strengths. KPS, in partnership with management, successfully transformed IES Attachments from a non-core division of a large corporation into a thriving, highly profitable and growing standalone company. Under KPS’ ownership, IES Attachments completed two highly synergistic acquisitions, increased productivity, diversified its end-markets, expanded its product offering and implemented a culture of continuous improvement. IES Attachments is the latest example of KPS’ investment strategy achieving success across economic cycles, geographies and industries, and we take immense pride in the Company’s accomplishments.
Ms. Palmer added, “We congratulate and thank the IES management team for their strategic vision and impressive execution. We are very proud to have partnered with them in IES Attachments’ incredible transformation, flawlessly executed during a period of rapid change in the Company’s end-markets.”
Steve Andrews, Chief Executive Officer of IES, added, “We thank KPS for recognizing the potential value of the Company in 2011. Working in partnership with KPS, we invested significantly in our people and operations, focusing on employee engagement, manufacturing excellence, and providing best-in-class product quality and service to our customers. We are grateful to KPS for providing our team with the expertise, capital and resources needed to grow our business and to further our culture of continuous improvement.”
Matt Roney, President of Paladin, said, “We are excited to join the Stanley Black & Decker organization, which shares our values of delivering industry-leading quality, innovation and customer service for our customers. As part of Stanley Black & Decker, IES Attachments will remain committed to its core strategic imperatives related to its people and customers. We thank our customers, suppliers and employees for their contributions to our success and look forward to continued success in years to come.”
Completion of the transaction is subject to customary closing conditions and approvals.
Paul, Weiss, Rifkind, Wharton and Garrison LLP served as legal counsel and Deutsche Bank served as exclusive financial advisor to KPS and IES with respect to the transaction.
About International Equipment Solutions
IES was created by KPS in 2011 to acquire the Paladin, Genesis, Pengo, Crenlo and Emcor brands. IES is a market leading manufacturer of engineered equipment for off-highway applications serving a wide range of applications in the construction, demolition, recycling, mining, utility, forestry, landscaping and agriculture end markets. IES’ Attachments division is a major independent manufacturer of attachment tools for off-highway applications. IES’ Cabs division is the largest independent manufacturer of operator cabs, locomotive sub-assemblies, electronic enclosures and other complex fabrications in North America and South America. Headquartered in Oak Brook, Illinois, IES operates 14 manufacturing facilities and four custom services locations with approximately 2,700 associates worldwide. For more information, please visit www.iesholdings.com
About KPS Capital Partners, LP
KPS is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $5.4 billion of assets under management. For over two decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $6.1 billion, operate 113 manufacturing facilities in 24 countries, and employ nearly 23,000 associates, directly and through joint ventures worldwide. The KPS investment strategy and portfolio companies are described in detail atwww.kpsfund.com.