Palladium Equity Partners has agreed to buy Kymera International from Platinum Equity. Financial terms weren’t announced. Kymera, of Research Triangle Park, North Carolina, is a group of company that produce specialty materials, powders, pastes and granules used in a wide range of metallurgical, chemical and industrial processes.
Palladium Equity Partners Acquires Kymera International from Platinum Equity
New York and Raleigh, NC, October 11, 2018 – Palladium Equity Partners, LLC (along with its affiliates, “Palladium”), a private investment firm with over $2.5 billion in assets under management, today announced that one of its affiliated private equity funds has acquired Kymera International (ACuPowder International, ECKA Granules and SCM Metal Products, collectively, “Kymera” or the “Company”), a leading global specialty materials company, from Los Angeles-based private investment firm Platinum Equity. Terms of the transaction were not disclosed.
Founded in the late 1800’s, the Kymera group of companies produces a variety of specialty materials, powders, pastes and granules used in a wide range of metallurgical, chemical and industrial processes. Many of the Company’s products are custom developed for specific customer applications in a variety of end-markets, including chemical, specialty auto, additive manufacturing, general industrial, mining, and aerospace, among others. The Company is headquartered in Research Triangle Park, NC and leverages global production capabilities across the United States, Australia, China, Europe and the Middle East to serve its customers.
Under Platinum Equity’s ownership, Kymera grew from two copper powder plants to become one of the largest manufacturers of specialty aluminum and copper powders worldwide.
“Kymera’s success reflects the culmination of a strategy to acquire multiple specialty material companies across the globe and integrate them operationally under one brand,” said Platinum Equity Partner Jacob Kotzubei. “Starting with the carve out of SCM Metal Products, we partnered with management to build on the platform over time, and supported the Company’s organic growth through investments in R&D and deployed our M&A&O® resources to source and execute three add-on acquisitions. The result is a high-performing, well-diversified business with a dynamic leadership team led by Barton White.”
Palladium is backing the Kymera management team with the goal of pursuing various avenues of growth, including accelerating the expansion of the Company’s value-added product portfolio, as well as pursuing complementary acquisitions in the specialty materials industry.
“Barton and the rest of the Kymera leadership team have built a leading specialty materials manufacturer with a reputation for delivering excellent service, deep technical expertise, and complete reliability to its customers,” noted Adam Shebitz, a Managing Director of Palladium. “We are excited about Kymera’s next chapter of growth.”
Barton White, CEO of Kymera, added, “We are proud of the results we have achieved under Platinum, and thank them for their support over their ownership period. We look forward to working with Palladium and leveraging their industry experience to accelerate our expansion plans, while continuing to focus on serving our customers as their trusted partners.”
Lazard Middle Market served as financial advisor to Kymera on the transaction. Morgan, Lewis & Bockius LLP, Baker & McKenzie LLP, and Alston & Bird LLP served as the Company’s legal advisors. KeyBanc Capital Markets served as financial advisor for Palladium. Paul, Weiss, Rifkind, Wharton & Garrison and Simpson Thacher & Bartlett served as the legal advisors for Palladium.
Kymera International is a market leading specialty materials company focused on aluminum and copper based powders, granules, and pastes. The Company sells its products into a wide variety of end markets, including chemical, specialty auto, general industrial, additive manufacturing, mining, and aerospace applications. Kymera is the only non-ferrous metal powder producer with a global manufacturing footprint in the U.S., Australia, Europe, and Asia. Kymera’s products are typically customized for the manufacturing processes of its over 1,500 active, long-tenured customers. Additional information available at www.kymerainternational.com
About Palladium Equity Partners, LLC
Palladium is a middle market private equity firm with over $2.5 billion in assets under management. The firm seeks to acquire and grow companies in partnership with founders and experienced management teams by providing capital, strategic guidance and operational oversight. Since its founding in 1997, Palladium has invested approximately $1.9 billion of capital in 31 platform investments and more than 100 add-on acquisitions. The principals of the firm have significant experience in consumer, services, industrials, and healthcare businesses, with a special focus on companies they believe will benefit from the growth in the U.S. Hispanic population. Palladium is based in New York City. For more information, visitwww.palladiumequity.com
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $13 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Over the past 23 years, Platinum Equity has completed more than 200 acquisitions. For more information, visit www.platinumequity.com