KCM Capital Completes Acquisition of Industrial Air Power

Industrial Air Power Adds Compressor Services Vertical to KCM’s Industrial Services Platform, the Industrial Service Group 

Chicago-based private investment firm KCM Capital Partners LLC, an investor in lower middle-market business services, value-added distribution, and specialty industrial companies, announced today that its industrial critical-to-process rotating equipment services platform, the Industrial Service Group, has completed the acquisition of Industrial Air Power, LLC headquartered in Muskego, Wisconsin.  The transaction was completed in partnership with Company management, PNC Mezzanine Capital based in Pittsburgh, Pennsylvania and Five Points Capital located in Winston-Salem, North Carolina.  This represents the third acquisition in the ISG investment strategy. Terms of the transaction were not disclosed.

Founded in 2008, Industrial Air Power is a leading provider of air compressors, maintenance/repair parts, and lubricants serving a broad base of customers across industrial and commercial end user markets.  With more than 200,000 parts available for immediate shipment, Industrial Air Power can handle all its customers’ compressed air needs.  The Company’s best-in-class e-commerce platform is complemented by its knowledgeable salespeople with significant experience in the compressed air industry.

Consistent with KCM’s investment philosophy – Keeping Continuity Matters – Industrial Air Power will continue operations under its current identity while its founder, Chris Klemz, will continue to oversee day-to-day operations of the business.

“Industrial Air Power is a tremendous addition to The Industrial Service Group family of companies,” says CEO Jim Richard.  “Chris and his team bring a solid track record for delivering exceptional service to the compressor parts and distribution industry.” He added that the acquisition, “expands our critical-to-process rotating equipment offering to include Compressors and supplements our existing businesses extremely well, while aligning with our strategic vision.”

Chris Klemz of Industrial Air Power said, “We are excited about joining The Industrial Service Group.  Maintaining our identity as a company, providing opportunities for our team members, and expanding our product lines was a priority for us.  With ISG as our partner, we are confident that we will meet these priorities and exceed our growth expectations for the future.”

Jon Gilbert, Partner at KCM, added, “Compressed air is considered the ‘fourth utility’ due to its critical nature to industrial operations, and Chris Klemz and the Industrial Air Power team have built an impressive business around keeping its customers’ critical operations running smoothly with its broad selection of products, quick turnaround times and leading customer service.  Industrial Air Power is a great addition to the ISG service offering.  We look forward to further executing the ISG strategy with our capital partners PNC Mezzanine Capital and Five Points Capital.”

LBC Credit Partners provided senior debt financing in support of the transaction, while Katten Muchin Rosenman LLP served as legal counsel to KCM.

About Industrial Air Power:

Headquartered in Muskego, Wisconsin, Industrial Air Power is a leading provider of air compressors, maintenance/repair parts, and lubricants serving a broad base of customers across industrial and commercial end user markets.  With more than 200,000 parts available for immediate shipment, Industrial Air Power can handle all its customers’ compressed air needs.  The Company’s best-in-class e-commerce platform is complemented by its knowledgeable salespeople with deep experience in the compressed air industry. For more information, please visit www.industrialairpower.com.

About Industrial Service Group:

The Industrial Service Group is a leading network of service-oriented companies specializing in the repair, service, distribution and sale of critical-to-process rotating equipment. ISG companies are leaders in their field and provide a combination of service, routine maintenance and product sales to hundreds of blue-chip customers throughout the U.S.  For more information, please visit www.isgservice.com.

About KCM Capital Partners:

KCM Capital Partners is a Chicago-based private investment firm focused on investing in lower middle-market business services, value-added distribution and specialty industrial businesses throughout the U.S.  Founded in 2017, KCM follows a simple philosophy – Keeping Continuity Matters – which is emblematic of our belief in the importance of a healthy culture and collaborative, trustworthy partnerships.  With this strategy in mind, we look to support founders and management teams of niche market leaders with creative solutions and strategic guidance to effect transformational growth.  For more information, please visit www.kcmcap.com.