Over 6x return caps the development of a category-defining company through D Cubed’s long-term investment fund
Transaction supports KPS Global’s continued focus on customers, innovation and growth
FORT WORTH, Texas, August 13, 2024–(BUSINESS WIRE)–D Cubed Group (“D Cubed”), a long-term private market investor backed by high net worth company founders and executives, today announced the sale of KPS Global (“KPSG” or “the Company”), the leading provider of custom insulated panel systems, to Viessmann Generations Group (“Viessmann”), a purpose-driven family-owned company with a 107-year heritage. The transaction, which represents a return of over six times for D Cubed investors, remains subject to customary closing conditions and is expected to close within the next 90 days. Financial terms of the transaction were not disclosed.
KPS Global was formed in 2015 by the D Cubed Group through the simultaneous acquisition of the Hill Phoenix Walk-Ins business from Dover Corporation and Kysor Panel Systems from Manitowoc Company, Inc. Since then, the combined, privately held company has grown into a world-class organization with an experienced leadership team and cutting-edge technology, business intelligence and award-winning innovations that have set the standard for the industry. Today, KPS Global generates over $400 million in revenue and is the market-leading provider of custom insulated panel systems to companies across all segments of the food retail, scientific and cold storage markets. This transaction marks a transition after nearly a decade of significant revenue growth, increased profitability and product expansion.
“From the beginning, we saw an opportunity to combine two market leaders through significant investment, commitment and a long-term focus and build a company with a single focus, world-class innovation and execution capabilities, and equip it with the resources it needs to continue to grow through its own offerings and diversify the markets it serves,” said Glenn Kaufman, Managing Director of D Cubed. “Through our investments in talent, systems, business intelligence and innovation, and our partnership with management, KPS Global has become the clear market leader and differentiates itself from its competitors through its end-to-end and fully customized capabilities, differentiated offerings and proven ability to grow in multiple markets.”
Kaufman continued, “Identifying and investing in such off-market opportunities and then driving and supporting business improvement and growth is exactly what D Cubed’s private market investment model is all about.” He added, “The most successful business building generally doesn’t happen in artificial 3- to 5-year time frames. It takes focus, commitment and investment. And knowing that you can and will apply those things for the time required to produce results and returns. The 9-year association with KPS Global is an example of our true path: disciplined business building to create and grow great companies, resulting in superior long-term returns.”
“I joined KPS Global because D Cubed had a clear vision and was willing to invest capital, effort and resources to build a company that would surpass anything that had ever existed in this industry,” said Mike Eakins, CEO of KPS Global. “Together, we have built something special that has differentiated KPS Global in the market by not only delivering what our customers need today, but also continually developing innovative solutions they will need in the future.”
KPS Global will be sold to Viessmann, a global, broadly diversified and purpose-driven family-owned responsible capital company. “We recognize D Cubed’s tremendous achievement in making KPS Global what it is today. We see an incredible opportunity to build on that and help the company further expand its ongoing growth within and outside of its core market,” said Max Viessmann, CEO of Viessmann. “We look forward to working with the company’s proven management to continue to drive value creation.”
“I look forward to working with another long-term, business-enhancing partner to continue to grow and expand our business while maintaining our commitment to our customers, employees and suppliers,” added Eakins. “The entire leadership team looks forward to working with Viessmann and will remain loyal to the company going forward.”
Kaufman concluded, “Together with a great management team that has partnered with us in every way, we have executed on our plan to build KPS Global to operate at a completely different level than what has existed before in its sector and to grow in its historical market and beyond. We are immensely proud of what has been accomplished with this investment, the team and what the company has become. We are excited to see how the business continues to grow over the long term.”
KPS Global will continue to be led by its existing management team, operate from its headquarters and a newly constructed innovation center in Fort Worth, and manufacture its products at its five strategically located facilities.
Baird acted as lead financial advisor, Lincoln International as co-financial advisor and DLA Piper as legal advisor to KPS Global and D Cubed Group in the transaction.
About D Cubed Group
D Cubed Group is a highly differentiated and long-term focused private investment firm that actively invests equity in profitable, small and mid-sized companies operating in carefully selected sectors of the business services and consumer goods industries. The firm is exclusively focused on delivering truly enhanced long-term, risk-adjusted investment returns to its business-focused, high-net-worth investors. D Cubed focuses on creating value by concentrating its investments in a limited group of specialty companies and providing them with comprehensive support and exceptional commitment and resources to help them grow into long-term great companies, while maintaining flexibility in terms of duration to allow them to focus for the long term. For more information about D Cubed Group, visit www.dcubedgroup.com.
About KPS Global
KPS Global is the market-leading provider of complete solutions for custom controlled environment enclosures with the most comprehensive value chain coverage in design, engineering, installation and after-market services. Since its founding by the D Cubed Group in 2015, the company has become the clear leader across the food retail end market and has significantly expanded its presence in the scientific and cold storage sectors. The company has five strategically located manufacturing facilities to serve customers around the world. Headquartered in Fort Worth, Texas, KPS Global is a privately held company with more than 850 employees.
About the Viessmann Group
Founded in 1917, the independent family business Viessmann is now a global, broadly diversified group. All activities are based on the company’s purpose: “Together, we create living spaces for future generations.” This is the passion and responsibility that the large, global Viessmann family brings to life every day. Viessmann forms an ecosystem of entrepreneurs and co-creators with a clear focus on CO2 Avoidance, CO2 Reduction and CO2 To record.
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Contacts
For the D group in the third potentiometer:
White clay
[email protected]
917-601-6012
For KPS Global:
Ashleigh Martin
[email protected]
817-437-3965
For Viessmann:
Byung Hun Park
[email protected]
+49 151-64911317
