Tinicum Acquires KGM in Partnership with Management
24 May 2024 - 2:00PM
Business Wire
Tinicum, L.P. and affiliated funds managed by Tinicum
Incorporated (“Tinicum”) announced today that it has acquired a
controlling interest in KGM from Compass Group Equity Partners
(“Compass Group”). Management shareholders have retained a
significant interest in the company. The financial terms of the
transaction were not disclosed.
Headquartered in Tulsa, Oklahoma, KGM is a leading value-added
distributor of natural gas products to utilities and commercial
& industrial customers. KGM’s product offering includes gas
meters, instruments, regulators, valves, and other related
equipment and parts. KGM’s value-added services include technical
support, training, testing and calibration, and product repair and
refurbishment.
“This marks an exciting new chapter for KGM. Tinicum’s family
heritage and focus on long-term business building are an excellent
fit for our company and industry,” said Tim Wood, CEO of KGM.
“We've been fortunate to have a great partner in Compass Group over
the last few years who has worked with us to drive tremendous
growth. Our partnership with Tinicum will enable further
investments in our team, product offering, capabilities and
facilities in order to continue delivering superior solutions that
enable growth and efficiency gains for our customers.”
Tinicum partner Trip Zedlitz added, “We deeply respect the team
and the business that Tim and his management group have developed
and it is an honor to partner with them. KGM has valuable long-term
partnerships with its OEM suppliers and customers and a
differentiated ability to deliver individualized and comprehensive
customer solutions with industry-leading product availability and
technical expertise. We look forward to building on KGM’s strong
foundation.”
“Our partnership with KGM epitomizes what we’re all about at
Compass Group – partnering with great companies in mid-America and
driving growth in both their business and in their people,” said
Chris Gibson, Managing Partner at Compass Group. “Over the years,
our partnership with KGM yielded numerous friendships and we look
forward to seeing our friends have continued success with a great
partner in Tinicum.”
Goodwin Procter represented Tinicum and BMO and Citizens Bank
led the financing for the transaction. McGuireWoods represented KGM
and Piper Sandler served as its exclusive financial advisor.
About KGM
KGM is a value-added distributor of meters, instruments,
regulators, valves and other gas measurement and flow control
equipment to utilities and commercial & industrial customers.
KGM provides technical support, training, testing and calibration,
and product repair and refurbishment services. Its products and
services are critical to our nation’s infrastructure and KGM is a
true value-added partner for OEMs and customers alike. For more
information, visit kgmgas.com.
About Tinicum
Tinicum, founded in 1974 as a family investment office, is a
private partnership that manages a diversified group of
manufacturing, distribution, and industrial technology companies.
It seeks to be the trusted partner of business owners and
executives who share its belief that long-term prosperity can be
created by teams of capable, honest people working together and
investing diligently to fulfill the potential of great businesses.
For more information, visit www.tinicum.com.
About Compass Group
Compass Group Equity Partners is a St. Louis-based private
equity firm with a record of success in partnering with and
building lower middle-market companies. Founded in 2014, Compass
Group brings a thesis-driven approach and decades of operational,
financial, and strategic expertise to aid management teams in
accelerating growth for long-term value creation. For more
information, please visit www.cgep.com.
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Erik Blumenkranz – Tinicum Incorporated 415 391 3324