KPS Capital Partners (KPS) has signed a definitive agreement, through an affiliate, to sell the attachments division of International Equipment Solutions (IES), consisting of IES’ Paladin, Genesis and Pengo business units, to Stanley Black & Decker for USD690 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 capitalise 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.”
Palmer says: “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, adds: “We thank KPS for recognising 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, says: “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.