Kelso & Co exits engineering co for $315m

The New York buyout firm has agreed to sell Key Components, a maker of custom engineered components, to global industrial conglomerate Actuant.

New York-based Kelso & Company has signed an agreement to sell its 70 percent stake in Key Components to publicly traded Actuant for $315 million (€242 million).

The deal includes the assumption of $80 million (€62 million) in debt, according to Reuters.

Key Components, based in Tarrytown, New York, manufactures custom engineered components through two business segments. Its electrical components business makes transformers, battery chargers for golf carts, plugs and receptacles, ship-to-shore electrical connectors, switchgear for electric utilities, and vehicle-to-outlet connectors used in RVs. The mechanical engineered components segment makes flexible shaft assemblies used in weed trimmers and other machinery, locks and security systems for office furniture and storage lockers, and actuators for diesel motors).

Key Components operates through subsidiary companies with established brand names including Marinco, AFI, Guest Products and Turner Electric, and targets original equipment manufacturers (OEMs).

Actuant, based in Milwaukee, is a diversified industrial company with operations in more than 20 countries. Actuant’s business segments specialise in engineered position and motion control systems, and branded hydraulic and electrical tools.

CIBC World Markets is serving as exclusive financial advisor to Key Components.

Kelso’s last major exit was back in May, when it sold its 50 percent stake in Armkel, the maker of Trojan condoms, to Church & Dwight, a New Jersey-based maker of household products, for $254 million (€214 million). The buyout firm was reported to reap a $137.2 profit on the deal.