KKR in $1bn US oil deal

The investment in the Crosby Group was made by KKR’s North America Fund XI, a $8bn 2012-vintage, which has now made seven investments.

Kohlberg Kravis Roberts has acquired The Crosby Group and Acco Material Handling Solutions from Melrose Industries, for approximately $1 billion. 

Crosby, which is headquartered in Tulsa, Oklahoma, provides engineering services for lifting and rigging applications across the oil and gas, construction, mining and industrial sectors globally. It employs over 1,300 employees people. 

Pennsylvania-based Acco, which employs 130 people, provides custom-built specialty material handling equipment, including industrial cranes, monorails, carts and trailers.

The transaction remains subject to regulatory approval but is expected to close in the fourth quarter of this year, KKR said in a statement. 

Rothschild and Simmons & Company served as lead financial and M&A advisors to KKR. Morgan Stanley, UBS Investment Bank and RBC Capital Markets also acted as M&A advisors, while Kirkland & Ellis provided legal advice to KKR. UBS Investment Bank and Morgan Stanley will provide the financing for the deal. 

KKR made the investment using its North America Fund XI. On the latest earnings call KKR said the fund, a 2012-vintage, was ‘over $8 billion’. Following this deal, Fund XI has made seven investments: PRA International, Research Pharmaceutical Services, Mitchell International, Alliant Insurance Services, Westbrick Energy and Sunrise Senior Living Management. 

The deal announcement came on the same day that KKR unveiled its first deal in Malaysia: it paid $200 million to buy a “significant minority stake” in helicopter company Weststar Aviation Services.