Monomoy Capital Partners has sold Minneapolis-based Katun Corp, a provider of OEM-compatible imaging supplies, toner, photo receptors and parts for copiers, printers, and other equipment for the imaging industry. The buyer is General Plastic Industrial Ltd. No financial terms were disclosed. Saurin Mehta and Gaurang Shastri of Lincoln International served as financial advisers to Katun on the sale.
NEW YORK, NEW YORK (January 8, 2018) – Monomoy Capital Partners (“Monomoy”), a leading private equity fund focused on deep value investing and business improvement in middle-market companies, announced today that it has completed the sale of Katun Corporation (“Katun”) to a Taiwanese buyer, General Plastic Industrial Co., Ltd. (“GPI”), for an undisclosed amount.
Katun is one of the world’s leading providers of OEM-compatible imaging supplies, toner, photo receptors, and parts for copiers, printers, and other equipment for the imaging industry. The company is headquartered in Minneapolis, Minnesota and operates sales and distribution facilities throughout North America, Europe, Latin America, the Middle East and Africa.
“Over our ownership period, we helped transform this corporate carveout into a resilient, disciplined design and distribution business through challenging market dynamics,” said Jaime McKenzie, a Monomoy Director. “We leveraged Monomoy’s operationally-focused strategy to drive free cash flow and stable earnings and successfully positioned Katun for continued growth under the ownership of a strategic buyer. Katun is a premiere provider of aftermarket imaging supplies with a world-class management team, and we wish them all the best.”
Monomoy acquired Katun under its first fund, Monomoy Capital Partners, L.P. Monomoy is currently investing out of its third fund vehicle, Monomoy Capital Partners III, L.P., with $767 million of committed capital to pursue the acquisition of middle-market businesses.
“Monomoy has been an instrumental partner throughout the transformation of Katun,” explained Robert Moore, Katun’s President and Chief Executive Officer. “Monomoy’s dedicated team of investment and operating professionals helped Katun create a strong, profitable business and set a new standard for excellence throughout the company. Monomoy gave us the support and resources necessary to execute a winning global strategy and create substantial value for our shareholders. We are excited about the future of Katun, and we are confident the company is poised for continued success as a global leader in our industry.”
“Katun is a great example of how Monomoy creates value,” said Justin Hillenbrand, Co-Chief Executive Officer of Monomoy. “In partnership with management, we were able to improve the business through the Great Recession by eliminating low margin products, exiting unprofitable geographies, streamlining corporate overhead costs, improving efficiency at Katun’s distribution centers, driving profitable growth and positioning the business for a successful exit.”
Saurin Mehta and Gaurang Shastri of Lincoln International acted as the financial advisors to Katun in the sale of the business to GPI. Amy Wollensack and Renata Malavazzi of Kirkland & Ellis provided legal counsel to both Katun and Monomoy. Grant Thornton provided quality of earnings support for Katun in the sale process, and Aon Risk Management provided insurance advice.
Monomoy Capital Partners is a private equity firm with $1.5 billion in committed capital that makes control investments in lower middle-market businesses in the manufacturing, distribution, consumer products and foodservice sectors. Over the past 12 years, Monomoy has closed nearly 50 middle market acquisitions, and its companies have produced over $3.5 billion in combined sales and employed more than 15,000 associates across four continents. Monomoy implements customized business improvement programs at its investments that reduce operating expenses, increase profitability and encourage growth. Since forming the firm in 2005, Monomoy has grown its staff from three founders to a firm of 34 world-class professionals. To learn more about Monomoy and its portfolio, please visit the firm’s website at www.mcpfunds.com.
Katun is a leading, worldwide supplier of compatible imaging supplies, photoreceptors, parts and accessories for copiers, multifunctional devices and printers. The Company is headquartered in Minneapolis, Minnesota; operates seven distribution facilities in the United States and Europe; and maintains over 20 sales and customer service offices throughout the world. Katun serves more than 11,500 customers in nearly 130 countries. Please visit www.katun.com for a detailed description of Katun and its product line.