New York-based private equity firm KPS Capital Partners LP has signed a deal to sell the Genesis, Paladin and Pengo attachments brands of International Equipment Solutions LLC (IES) to Stanley Black & Decker for $690 million.
New Britain, Connecticut-based Stanley already owns and markets LaBounty brand attachments. The IES division to be acquired by Stanley includes the Genesis, Paladin and Pengo business units, along with all the brands and operations within those units, including Jewell and Sweepster. KPS will retain ownership of IES’ heavy equipment cabs and cab enclosures division.
[Update: The final acquisition by Stanley Black & Decker included the Paladin and Pengo brands, but IES retained ownership of the Genesis attachment line. The value of the revised acquisition was not included in a March 2019 press release issued by Stanley Black & Decker.]
“The acquisition of IES Attachments further diversifies our presence in the industrial markets, creates an additional well-defined path for continued profitable growth and delivers compelling cash flow returns,” comments James M. Loree, Stanley Black & Decker’s president and CEO.
The IES brands manufacture attachment tools for off-highway applications, including demolition and scrap recycling. During KPS’ ownership, IES Attachments acquired and integrated two additional companies, CWS Industries and Kodiak, and launched Paladin de Brasil in 2013.
“Our investment in IES Attachments demonstrates our ability to identify the best businesses in their respective industries, and work with management to capitalize on each company’s strengths,” says Raquel Palmer, a KPS partner. “KPS, in partnership with management, successfully transformed IES Attachments from a non-core division of a large corporation into a thriving, highly profitable and growing standalone company.”
According to Stanley Black & Decker, approximately 60 percent of the IES attachments unit’s $400 million in annual revenue is related to aftermarket applications. “With the addition of IES Attachments, Stanley Black & Decker will operate a broad portfolio of attachment solutions and a meaningful platform for continued organic and acquisitive growth,” states Stanley.
Stanley Black & Decker also indicates the acquired brands will be integrated with the Hydraulic Tools business within its Industrial segment.
The multinational firm describes itself as an S&P 500 company that is a global provider of hand tools, power tools and related accessories; electronic security equipment; health care equipment; and engineered fastening systems and other products.
