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KPS CAPITAL PARTNERS, LP AGREES TO ACQUIRE
PALADIN BRANDS
HOLDING, INC. AND CRENLO LLC FROM DOVER CORPORATION
ANNOUNCES FORMATION OF INTERNATIONAL
EQUIPMENT SOLUTIONS, LLC
New York, NY (September 7,
2011) -- KPS Capital Partners, LP ("KPS") announced today that,
through a newly formed company, International Equipment Solutions, LLC
and its affiliates (“IES”), it has entered into definitive agreements to
acquire Paladin Brands Holding, Inc. (“Paladin”) and Crenlo
LLC (“Crenlo”) from Dover Corporation
(NYSE:DOV) (“Dover”). Financial
terms of the transaction were not disclosed.
Paladin is the leading
independent North American provider of engineered attachment tools for
operator-driven equipment serving a wide range of markets. Paladin operates four business units,
each focused on specific markets and products. Paladin Construction Group
serves the construction, landscaping, agriculture and aviation markets
under industry leading brands, including Bradco®,
McMillen®, FFC®, Sweepster®,
Harley®, JRB®, C&P®, and CustomWorks®. Paladin Demolition and Recycling,
through its Genesis® brand, serves the demolition and metal recycling
markets. Paladin Utility, through its Pengo®
brand, provides augers and related tools for utility and foundation
drilling markets. Paladin Custom Material Handling, through its
Jewell® brand, provides custom excavator packages for demolition,
forestry and material handling markets.
Crenlo is a leading
North America provider of steel cabs and roll-over protective structures
(ROPS) and electronics enclosures for customers serving a wide range of
markets. In the operator interface
cab segment, Crenlo serves world class OEM
customers in the construction, mining, agriculture and specialty truck
markets. Crenlo, through its Emcor® brand, also manufactures electronic enclosures.
Emcor provides standard catalog and custom
products for customers serving the technology, aerospace, government and
energy markets.
Raquel Palmer, a KPS Partner,
said, “We are very excited to create International Equipment Solutions.
IES, by acquiring Paladin and Crenlo, launches
as the premier international engineered equipment manufacturer, with an
industry leading portfolio of brands and an exceptionally strong
reputation for quality, durability, delivery, product support and product
innovation. We intend to grow IES aggressively both organically and
through acquisition in North America and globally. The combination of the
company’s exceptional operational expertise and strong customer
relationships, combined with financial resources provided by KPS, will
facilitate IES’s global expansion, especially in China, India and South
America.”
David Burdakin,
President and CEO of Paladin, said, “Our entire team at Paladin is
pleased to move forward under KPS and excited about their commitment to
manufacturing excellence and to supporting our future growth. We will remain focused on providing our
customers with industry leading products and unsurpassed service.”
David Kilburn, President of Crenlo, said, “We are thrilled to work with KPS to
further Crenlo’s ambitious growth
initiatives. As part of the IES
platform, we look forward to expanding Crenlo
globally and to further strengthening the relationships we have today
with our customers.”
The closing of the transaction is
expected during the third quarter of 2011 and is subject to customary
closing conditions.
Paul, Weiss, Rifkind, Wharton and Garrison LLP served as legal
counsel to KPS and International Equipment Solutions, LLC and its
affiliates.
About Paladin
Brands Holding, Inc.
Paladin designs, engineers and
manufactures attachment tools for heavy and light equipment with
applications in the construction, agriculture, demolition, recycling,
landscaping, aviation and utility end-markets. Paladin’s industry
leading brands include Bradco®, McMillen®, FFC®, Sweepster®,
Harley®, JRB®, C&P®, CustomWorks®,
Genesis®, Pengo® and Jewell®. The Company’s products include buckets,
couplers, trenchers, shears, augers, brooms, forks, grapples and many
other attachment tools. Paladin’s
customers include major international OEMs, independent and OEM-aligned
dealers, and national equipment rental businesses. The Company has
approximately 1,000 employees across 12 facilities in Iowa, Ohio,
Michigan, Wisconsin, Minnesota, North Carolina, Tennessee, Oregon and Memmingen, Germany.
For more information, please visit www.paladinbrands.com.
About Crenlo
LLC
Crenlo LLC designs,
engineers, and manufactures cabs and roll over protective structures
(ROPS) as well as specialty electronic enclosures. The cabs
business manufactures steel frame cab enclosures and roll-over protection
structures primarily for applications in the construction, specialty
truck, mining and agricultural end-markets. The specialty
electronic enclosures business, through its Emcor®
brand, designs and manufactures vertical racks, consoles, kiosks, and
other custom products for applications in the air-traffic control,
aerospace, defense and alternative energy end-markets. The
Company’s customers include major international OEMs, systems
integrators, and various end-market customers. The Company has approximately 680
employees at two facilities located in Rochester, MN. For more
information, please visit www.crenlo.com.
About KPS
Capital Partners, LP
KPS Capital Partners, LP is the
manager of the KPS Special Situations Funds, a family of private equity
funds with over $2.7 billion of assets under management focused on
constructive investing in restructurings, turnarounds and other special
situations. KPS has created new companies to purchase operating assets
out of bankruptcy; established stand-alone entities to operate divested
assets; and recapitalized highly leveraged public and private companies.
The KPS investment strategy targets companies with strong franchises that
are experiencing operating and financial problems. KPS invests its
capital concurrently with a turnaround plan predicated on cost reduction,
capital investment and capital availability. Typically, the KPS
turnaround plan is accompanied by a financial restructuring of the
company's liabilities. The KPS investment strategy and portfolio
companies are described in detail at the firm's website: www.kpsfund.com.
