KPS Capital Partners, LP (“KPS”) announced today that it has signed a definitive agreement to purchase the IKG business (“IKG” or the “Company”) from Harsco Corporation for total consideration of $85 million, subject to customary closing adjustments. Upon completion of the transaction, IKG will become the second portfolio company of KPS Special Situations Mid-Cap Fund (“KPS Mid-Cap”).
IKG is a leading North American manufacturer of high-quality steel and aluminum bar grating. The Company offers a full range of metal bar grating and fencing products, which are used primarily in industrial flooring, safety and security applications across a wide range of industries. IKG is headquartered in Houston, Texas, with six strategically located manufacturing facilities across the U.S. and Mexico, and 350 employees globally.
Ryan Harrison, a Partner of KPS Mid-Cap, said, “We thank Harsco for their constructive approach on this transaction and look forward to working with Chief Executive Officer Chad McClendon, and IKG’s management team and employees to build on this great platform. Given IKG’s demonstrated strengths, the addition of KPS’ strategic, operational and financial resources will create an ideal foundation for IKG’s future success as an independent company. We intend to drive the Company’s growth both organically and through strategic acquisitions.”
Nick Grasberger, Harsco Chairman and CEO, said, “I am confident that under KPS’ ownership, IKG will become part of a firm that has extensive experience owning and operating metals-related businesses, and one that is committed to its growth.”
Chad McClendon, Chief Executive Officer of IKG, said, “We are thrilled to partner with KPS in this exciting new chapter for IKG. The IKG team is deeply committed to providing high-quality products, unmatched technical expertise and innovative solutions to our customers. Given its successful track record in building world-class manufacturing businesses globally over decades, KPS is the ideal partner to accelerate IKG’s strong momentum.”
Completion of the transaction is expected early in 2020 and is subject to customary closing conditions and approvals.