Tinicum Acquires KGM in Partnership with Management

Tinicum and affiliated funds managed by Tinicum Incorporated has acquired a controlling interest in KGM from Compass Group Equity Partners. Management shareholders have retained a significant interest in the company. The financial terms of the transaction were not disclosed.

“This marks an exciting new chapter for KGM. Tinicum’s family heritage and focus on long-term business building are an excellent fit for our company and industry,” Tim Wood, CEO of KGM, said. “We’ve been fortunate to have a great partner in Compass Group over the last few years, who has worked with us to drive tremendous growth. Our partnership with Tinicum will enable further investments in our team, product offering, capabilities and facilities in order to continue delivering superior solutions that enable growth and efficiency gains for our customers.”

“We deeply respect the team and the business that Tim and his management group have developed, and it is an honor to partner with them,” Trip Zedlitz, partner at Tinicum, said. “KGM has valuable long-term partnerships with its OEM suppliers and customers and a differentiated ability to deliver individualized and comprehensive customer solutions with industry-leading product availability and technical expertise. We look forward to building on KGM’s strong foundation.”

“Our partnership with KGM epitomizes what we’re all about at Compass Group — partnering with great companies in mid-America and driving growth in both their business and in their people,” Chris Gibson, managing partner at Compass Group, said. “Over the years, our partnership with KGM yielded numerous friendships and we look forward to seeing our friends have continued success with a great partner in Tinicum.”

Goodwin Procter represented Tinicum. BMO and Citizens Bank led the financing for the transaction. McGuireWoods represented KGM. Piper Sandler served as its exclusive financial advisor.

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