KPS Capital Partners, LP announced today that it has signed a definitive agreement to sell its portfolio company, IKG, to an entity controlled by Meiser International GmbH, a leader in the manufacturing of steel gratings and industrial flooring, and Dubai Transport Company LLC, a conglomerate specialized in trading, manufacturing & logistics, construction, hospitality, energy and real estate. Financial terms of the transaction were not disclosed.
IKG is a leading North American manufacturer and fabricator of metal grating and access infrastructure products. The Company offers a full range of metal bar grating, miscellaneous steel and fencing products, used primarily in industrial flooring, safety and security applications across a wide range of industries. IKG is headquartered in Houston, Texas, with five strategically located manufacturing facilities across the U.S. and Mexico and has approximately 350 employees globally.
KPS acquired IKG in 2020 from Enviri Corporation, formerly Harsco Corporation. KPS and IKG’s management team completed a highly complex corporate carve-out transaction and executed a successful growth strategy that transformed IKG into a diversified and growing platform in the access infrastructure market. Under KPS’ ownership, the Company streamlined operations, constructed new manufacturing facilities, invested in modernization, introduced new products and significantly expanded its presence in high-growth end-markets.
Ryan Harrison, a Partner of KPS Mid-Cap Investments, stated, “The success of our investment in IKG demonstrates KPS’ ability to see value where others do not, to buy right and to make businesses better – across decades, industries, and financial, business and economic cycles.
We take immense pride in the Company’s accomplishments. We congratulate and thank the IKG management team for their strategic vision and tactical execution, which resulted in the Company’s significant revenue growth and value creation under our ownership. The Company is well-positioned for continued growth and industry leadership under MEISER’s and DUTCO’s ownership.”
Chad McClendon, Chief Executive Officer of IKG, added, “Our partnership with KPS was extraordinary. KPS recognized IKG’s strength and potential from the start and supported IKG’s growth objectives. 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 support to our customer base. We are grateful to KPS for providing our team with the expertise, capital and resources to grow IKG. We thank our customers, suppliers and employees for their contributions to our success. We look forward to the opportunities that MEISER and DUTCO will bring to help us further elevate the offering to our customers.”
Paul Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel and Jefferies LLC served as financial advisor to KPS and IKG. Completion of the transaction is subject to customary closing conditions and approvals.
About IKG
IKG is a leading North American manufacturer and fabricator of metal grating and access infrastructure products. The Company offers a full range of metal bar grating, miscellaneous steel and fencing products, used primarily in industrial flooring, safety and security applications across a wide range of industries. IKG is headquartered in Houston, Texas, with five strategically located manufacturing facilities across the U.S. and Mexico and has approximately 350 employees globally. More information can be found at www.ikg.com.
About KPS Capital Partners, LP
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.4 billion of assets under management (as of December 31, 2023). For over three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment, and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better and generates investment returns by structurally improving the strategic position, competitiveness, and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies currently generate aggregate annual revenues of approximately $20.4 billion, operate 223 manufacturing facilities in 26 countries, and have approximately 48,000 employees, directly and through joint ventures worldwide (as of September 30, 2023). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
About MEISER
MEISER, founded in 1956, is a German family-owned company specializing in the manufacture and supply of high-quality steel and metal products. Meiser is recognized in the industry for providing customized solutions and exceptional customer service in all its business areas. In addition to steel gratings, Meiser supplies road and safety equipment, expanded metal, solar mounting systems, various steel profiles, complete staircases and galvanizing services. Meiser has 20 manufacturing plants in Europe, Middle East, Africa and South America with 3,500 employees. www.meiser-group.com.
About DUTCO
DUTCO, founded in 1947, is a UAE headquartered family-owned multinational group. Its focus on innovation and commitment to world class standards has underpinned Dutco’s growth across a number of diverse industries. Today, the group has operations across five key business verticals, comprising (1) trading, manufacturing & logistics, (2) construction, (3) hospitality, (4) energy and (5) real estate. Dutco operates across 8 countries with over 10,000 employees, including existing operations within its energy, real estate and hospitality verticals in the United States. www.dutco.com.
