#USA #KPS Capital #Crane Company #Engineered Materials #Channahon

KPS Capital Partners to Acquire Crane Company's Engineered Materials Business

In a significant move within the manufacturing sector, KPS Capital Partners, LP has announced its plan to purchase the Engineered Materials business from Crane Company for an enterprise value of $227 million. This acquisition, finalized through a newly established affiliate, is scheduled for completion in the first quarter of 2025, pending standard regulatory approvals.

Focus on High-Quality Composite Products

The Engineered Materials division, also referred to as Crane Composites, is well-regarded as a top designer and manufacturer of fiberglass reinforced plastic (FRP) composite products. Their extensive product line includes wall and ceiling panels suited for commercial construction and specialized panels for recreational vehicles, trailers, and truck bodies. With a diverse market presence that spans building products, RVs, and transportation, Crane Composites operates out of Channahon, Illinois, and employs approximately 430 staff members across four strategically located manufacturing sites in the United States.

Pierre de Villeméjane, a Partner and Co-Head of KPS Mid-Cap Investments, expressed enthusiasm for the acquisition, emphasizing the opportunity to collaborate with John O'Sullivan, President of Crane Composites. De Villeméjane stated, “We are excited to acquire Crane Composites, which possesses excellent manufacturing capabilities, a solid product range, and a strong commitment to customer service. We believe that combining Crane's expertise with KPS’s strategic resources will create a foundation for future growth.”

A New Chapter for Crane Composites

John O'Sullivan echoed this sentiment, sharing optimism for the standalone future of Crane Composites under KPS’s management. “Partnering with KPS is a thrilling opportunity for us as we transition into an independent company. Their proven track record in manufacturing positions them as the ideal owner for our business. Together, we will focus on accelerating growth and enhancing operational capabilities,” O’Sullivan remarked.

The strategic plan involves not only organic growth but also potential acquisitions to broaden their product offering.

A Legacy of Excellence

Crane Composites stands out in the marketplace due to its history of over seventy years in manufacturing high-quality composite products. Its offerings are notably essential in various sectors, positioning it as a leader in composite solutions. Under KPS's umbrella, the company aims to build on this legacy, enhancing its competitive edge and market strength.

With KPS Capital Partners, which boasts a diverse portfolio and over $21.4 billion in assets under management as of September 30, 2024, Crane Composites looks forward to leveraging KPS’s operational and financial resources. KPS has a longstanding reputation for driving value in manufacturing entities, aiming to unlock potential through improved strategic positioning and operational efficiencies.

As the industry observes this acquisition, the focus will turn to how Crane Composites leverages this partnership to continue its legacy and navigate its growth trajectory in a rapidly evolving market landscape. The coming months are expected to reveal further developments as the transaction moves towards its anticipated closure.

For more information about Crane Composites and its product offerings, visit their website at www.cranecomposites.com.

For insights into KPS Capital Partners and its investment approach, visit www.kpsfund.com.