Gryphon Investors Successfully Sells Kano Laboratories
Gryphon Investors, a distinguished middle-market private equity firm, has announced the successful sale of Kano Laboratories, an esteemed manufacturer known for its premium industrial penetrants and synthetic greases. This transfer marks a notable milestone for Gryphon, reflecting their commitment to nurturing and growing iconic brands in the industry.
Significant Growth Under Gryphon's Ownership
During Gryphon's stewardship, Kano has experienced impressive growth, nearly tripling its revenue. Founded in 1939, Kano has established itself as a leading name through its iconic Kroil-branded penetrating oils, widely trusted by professionals and DIY enthusiasts alike for tasks such as loosening corroded metal components. Their robust product range, including the notable acquisition of Super Lube, further positions them as a leader in the MRO sector.
A Transformative Partnership
Keith Stimson, Deal Partner and Co-Head of Gryphon's Heritage Group, remarked on their successful collaboration, stating, "We are proud to have built upon the heritage of the Kroil brand, evolving it into a competitive market leader. Together with Kano's management, we instituted a refined go-to-market strategy, explored new distribution avenues, and expanded our product offerings, particularly through the integration of Super Lube's assets." This strategic approach laid the groundwork for Kano to capitalize on promising growth opportunities headed into the future.
Kano's Journey and Evolution
Kano Laboratories has had a remarkable journey in the industrial chemicals landscape. The recent acquisition of Synco Chemical Corporation expands its product line into food-grade greases and oils under the Super Lube brand. This acquisition not only broadens their offerings but also strengthens their position across various professional sectors.
Vision for the Future
Mark Klein, the CEO of Kano Laboratories, expressed the positive impact of Gryphon's partnership, highlighting how it has empowered the company to evolve into a leading entity in premium penetrants, lubricants, and greases. With the assistance of Gryphon's resources, the business executed a distinctive growth strategy, successfully penetrating new trade channels and enhancing its market presence.
Financial Advisors and Legal Support
In navigating this sale, BMO played a principal role as Gryphon's lead financial advisor, ensuring that the transaction was carried out efficiently. Additionally, Houlihan Lokey provided financial advisory services, while Kirkland & Ellis offered crucial legal support, ensuring all aspects were addressed meticulously during the completion of the sale.
About Gryphon Investors
Gryphon Investors is a prominent middle-market private investment firm that emphasizes growing companies across various sectors, including Business Services, Consumer, Healthcare, Industrial Growth, Software, and Technology Solutions. With over $9 billion in assets under management, they focus on establishing strong partnerships with business owners and executives.
This focus allows Gryphon to create enduring value through an integrated business model. Their distinct operational strategy utilizes experienced senior executives who specialize in various areas, including management and financial operations, which benefits their portfolio companies significantly.
Frequently Asked Questions
What was the significance of Gryphon's sale of Kano Laboratories?
The sale demonstrated Gryphon's successful investment strategy that resulted in nearly tripling Kano's revenue during their ownership.
How did Kano Laboratories evolve under Gryphon's ownership?
Under Gryphon, Kano expanded its product lines, including a notable acquisition of Synco Chemical Corporation, and strengthened its market presence significantly.
What is Gryphon Investors known for?
Gryphon Investors is known for its focus on growing middle-market companies across various sectors and forming strategic partnerships that enhance business value.
Who were the financial advisors for the sale?
BMO served as the lead financial advisor, with Houlihan Lokey also providing advisory services during the transaction.
What is the future outlook for Kano Laboratories?
With a solid operational foundation and strategic product expansions, Kano is well-positioned to explore exciting growth opportunities in the market.
