Platinum Equity and Ares Finance Drive Kingswood's Acquisition of Daramic

Significant Financing Deal in the Battery Industry

In a major move within the finance and manufacturing sectors, Platinum Credit Opportunities Funds (PCOF) alongside Ares Commercial Finance (ACF) have announced their role in providing substantial financing for the acquisition of Daramic, LLC, by Kingswood Capital Management (KCM). This collaborative effort is not only a testament to the strength of the involved organizations but also emphasizes the promising future of the lead battery production industry, in which Daramic specializes.

Overview of the Transaction

On April 27, 2026, PCOF and ACF disclosed their financial support for Kingswood's acquisition of Daramic, a company that has positioned itself as a global leader in the manufacturing of high-performance polyethylene and phenolic resin-based battery separators. These separators are integral to the lead battery industry, which has been experiencing a renaissance due to the rise of electric vehicles and renewable energy storage systems.

Jacob Kotzubei and Louis Samson, Co-Presidents of Platinum Equity, underscored the significance of such financing solutions in a dynamic market, highlighting their ability to back strong businesses through tailored capital solutions. They noted that the unique approach of intertwining industry expertise with hands-on resources often results in enhanced value for borrowers.

In further comments, Michael Fabiano, Managing Director and Global Head of Credit at Platinum Equity, reiterated the firm’s long-term, partnership-driven investment strategy. He expressed confidence that Daramic stands as an exemplary model of a business ripe for enhancing growth through their credit platform.

Daramic: A Leader in Battery Technology

For over nine decades, Daramic has carved a niche for itself by innovating within the battery market. Headquartered in Charlotte, North Carolina, the company operates multiple manufacturing and sales facilities globally. This extensive operational footprint ensures rapid service and supply continuity, which are critical in meeting the demands of the evolving battery industry.

With centers of innovation located in Owensboro, Kentucky; Selestat, France; and Gujarat, India, Daramic aims to deliver exceptional expertise in advanced separator technology. This infrastructure allows them to adapt quickly to specific customer needs and support their technical teams through product customizations.

The Partners Behind the Deal

Kingswood Capital Management focuses on providing operational resources and capital to middle-market companies that can utilize their extensive experience for sustainable growth. Based in Los Angeles, KCM presents itself as a partner seeking to embrace complexities in business development, thus driving durable value through strategic partnerships.

Ares Commercial Finance, the financing arm of Ares Management Corporation, plays a vital role in offering flexible financing solutions that cater to various needs—including acquisitions, working capital, and growth opportunities. George Couladis, Managing Director at ACF, expressed enthusiasm about working closely with KCM and Daramic’s management during a pivotal time in the company's growth trajectory.

Looking Ahead

The collaboration between these firms signifies a shared commitment to fostering robust industrial growth, particularly as the world pivots towards sustainable energy solutions. The acquisition not only strengthens Daramic’s position but also sets the stage for long-term value creation in the battery sector.

As the demand for high-performance batteries continues to surge amid the transition to renewable energy, this financing partnership exemplifies the necessary support that operational leaders need as they navigate their strategic initiatives. With an eye on the future, all parties involved are poised to contribute significantly to the evolving landscape of the battery industry.

This acquisition marks a crucial juncture, as it combines financial strength with manufacturing expertise, thereby laying the groundwork for innovation and progress in providing essential energy solutions for a sustainable future.