Global Leader in Mission Critical Air and Gas
Handling Equipment to Become Independent Company
NEW YORK, May 16, 2019 /CNW/ -- KPS Capital Partners
("KPS") announced today that it has signed a definitive agreement
to acquire Howden, (the "Company") from Colfax Corporation (NYSE:
CFX) for an enterprise value of $1.80
billion, including $1.66
billion in cash consideration and $0.14 billion in assumed liabilities and minority
interest, subject to customary closing adjustments.
Howden is a leading global provider of mission critical air and
gas handling products and services to the industrial, power, oil
& gas, and mining industries. Based in Glasgow, Scotland, Howden has a 160 year
heritage as a world-class application engineering and manufacturing
company with a presence in 32 countries. Howden manufactures
highly engineered fans, compressors, heat exchangers, steam
turbines, and other air and gas handling equipment, and provides
service and support to customers around the world in highly
diversified end-markets and geographies. The Company has over
5,300 employees, including over 650 industry-leading engineers and
22 manufacturing facilities in 12 countries.
Raquel Palmer, Co-Managing
Partner of KPS, said, "We are thrilled to have the opportunity to
own and support Howden as the Company continues its path of
transformation and growth. Howden is a formidable company that
benefits from many positive secular trends, including increasingly greater
environmental standards, the need for energy conservation and the
trend toward urbanization, especially in developing economies.
Howden enjoys a leading market position, scale, a global
manufacturing footprint, world-class design and engineering
capabilities, and a portfolio of industry-leading products. We
intend to capitalize on the Company's many attractive growth
opportunities, including strategic acquisitions, and to support its
already substantial investment in research and development,
technology and new product development. We look forward to
partnering with Howden's talented management team to achieve
success as an independent company."
Ian
Brander, Chief Executive Officer of Howden, said, "We are
excited about our future as an independent company under KPS'
ownership. KPS is an ideal partner, given its demonstrated track
record of recognizing and growing world-class industrial
companies. KPS' commitment to continuous improvement, its
global network, access to capital and significant resources will
enable us to continue to grow our business and provide our
customers with market-leading products and
solutions."
"We are very pleased that our Air and Gas Handling associates
will be working with a strong partner whose vision is to invest and
grow the business," said Matt
Trerotola, President and Chief Executive Officer of Colfax
Corporation. "I want to thank the team for their success in
reshaping the business toward more profitable growth
opportunities."
Completion of the transaction is expected in the second half of
2019 and is subject to customary closing conditions and
approvals.
J.P. Morgan Securities LLC and RBC Capital Markets acted as
financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison
LLP served as legal counsel to KPS and its affiliates.
About Howden
Howden is a leading global provider of
mission critical air and gas handling products and services to the
industrial, power, oil & gas, and mining industries. Based
in Glasgow, Scotland, Howden has a
160 year heritage as a world-class application engineering and
manufacturing company with a presence in 32 countries. Howden
manufactures highly engineered fans, compressors, heat exchangers,
steam turbines, and other air and gas handling equipment, and provides service and support to customers
around the world in highly diversified end-markets and
geographies. The Company has over 5,300 employees, including
over 650 industry-leading engineers, and 22 manufacturing
facilities in 12 countries. For more information on Howden,
visit www.howden.com.
About KPS Capital Partners
KPS, through its affiliated
management entities, is the manager of the KPS Special Situations
Funds, a family of investment funds with approximately $5.0 billion of assets under management (as of
March 31, 2019). For over two
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 have aggregate annual revenues of approximately
$5.8 billion, operate 100
manufacturing facilities in 27 countries, and have over 22,000
employees, directly and through joint ventures worldwide. The
KPS investment strategy and portfolio companies are described in
detail at www.kpsfund.com.
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SOURCE KPS Capital Partners, LP