Monomoy Capital Partners (Monomoy), a private equity fund focused on deep value investing and business improvement in middle-market companies, has completed the sale of Katun Corporation (Katun) to a Taiwanese buyer, General Plastic Industrial Co (GPI), for an undisclosed amount.
Katun is one of the world’s leading providers of OEM-compatible imaging supplies, toner, photoreceptors, 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,” says 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, Monomoy is currently investing out of its third fund vehicle, Monomoy Capital Partners III, with USD767 million of committed capital to pursue the acquisition of middle-market businesses.
“Monomoy has been an instrumental partner throughout the transformation of Katun,” says 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,” says 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.
