KKR to Acquire Hyperion from Sandvik
09 December 2017 - 1:59AM
Business Wire
All Employees to Become Owners in Company
KKR today announced it is acquiring Hyperion, a leading
manufacturer of industrial tool components, from Sandvik. This
transaction marks KKR’s first acquisition of a middle-market
business in the industrials sector and is being funded through
KKR’s Americas XII Fund.
Headquartered in Fair Lawn, New Jersey with approximately 1,400
employees, Hyperion is a global provider of manufacturing products
using cemented carbide, cubic boron nitride and synthetic diamond –
high quality materials known for their hardness and toughness.
Specifically, Hyperion’s role in the tool-making value chain is to
transform raw materials into tool components which are later used
and completed by manufacturers. It also supports engineered
products by supplying finished gears or capital goods such as
bearings or rotary cutters. By supplying customers with effective
and wear-resistant tools, systems and components in hard and
super-hard materials, the company enables them to ultimately
improve business performance.
“Hyperion is known for its high-quality, effective products and
has a loyal customer following. We see tremendous opportunity to
help support the growth of the company and its customers by
establishing the business as a standalone entity. As we have done
with our other industrials investments, we plan to implement a
broad-based employee engagement model upon closing the transaction
to ensure all employees have a stake in the success that lies
ahead,” said Pete Stavros, Member of KKR and Head of KKR's
Industrials investment team.
Over the last six years, KKR’s Industrials team has focused on
employee engagement as a key driver in building stronger companies.
The centerpiece of the strategy has been to make all employees
owners in the business by granting them the opportunity to
participate in the equity return directly alongside KKR. Beyond
sharing ownership, KKR also supports employee engagement by
investing in training across multiple functional areas, driving
improvements in worker safety and by supporting the company’s
involvement in the community.
“I’m pleased that we have found a new owner who will support
Hyperion’s continued development. This agreement is an important
step in focusing Sandvik on its core businesses. The divestment
creates additional capacity for growth and expansion for the core
business of Sandvik,” said Bj�rn Rosengren, President and CEO of
Sandvik.
This transaction, which is subject to regulatory approvals and
other customary closing conditions, is expected to close during the
first half of 2018. KKR was advised in the transaction by Latham
& Watkins LLP, Advokatfirman Vinge, Deloitte and SEB Corporate
Finance.
About Hyperion
Hyperion is the global leader in hard and super-hard materials
with over 60 years of experience in cemented carbide, diamond and
cubic boron nitride technologies, providing solutions for the most
demanding applications.
About KKR
KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate, credit and, through its strategic
manager partnerships, hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined
investment approach, employing world-class people, and driving
growth and value creation with KKR portfolio companies. KKR invests
its own capital alongside its partners' capital and provides
financing solutions and investment opportunities through its
capital markets business. References to KKR's investments may
include the activities of its sponsored funds. For additional
information about KKR & Co. L.P.(NYSE: KKR), please visit
KKR's website at www.kkr.com and on Twitter @KKR_Co.
For more information about KKR’s industrials team and the
employee engagement model please visit the KKR Industrials page on
LinkedIn, @KKR_Industrials on Twitter and KKR Industrials on
YouTube.
Sandvik Group
Sandvik is a high-tech and global engineering group offering
products and services that enhance customer productivity,
profitability and safety. They hold world-leading positions in
selected areas – tools and tooling systems for metal cutting;
equipment and tools, service and technical solutions for the mining
and construction industries; products in advanced stainless steels
and special alloys as well as products for industrial heating. In
2016, the Group had approximately 43,000 employees and sales of 82
billion SEK in more than 150 countries within continuing
operations.
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version on businesswire.com: http://www.businesswire.com/news/home/20171208005371/en/
KKRKristi Huller or Cara Kleiman Major,
+1-212-750-8300media@kkr.comorSandvikAnn-Sofie Nordh, +46 8 456 14
94Vice President Investor RelationsorJessica Alm, +46 8 456
1288Executive Vice President Group Communications
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