Platinum Equity Kohler Aims for Energy Independence

Platinum Equity's acquisition of Kohler Co. has sparked a significant shift towards energy independence.

Kohler's focus on sustainability has been a key driver of this change.

Kohler's commitment to energy independence involves investing in renewable energy sources, such as solar and wind power.

This move is expected to reduce the company's reliance on fossil fuels and lower its carbon footprint.

Kohler's energy independence goals are closely tied to its manufacturing operations, with a focus on reducing energy consumption and waste.

Platinum Equity has acquired Kohler Energy, the energy division of Kohler Co, with a deal expected to close in mid-2024.

Kohler Energy will operate as an independent business, with Platinum Equity as the majority owner, while Kohler Co will remain an investment partner.

Platinum Equity has a successful track record with carve-out transactions, having acquired businesses from companies like Johnson & Johnson and Caterpillar.

The energy resilience business has an outstanding leadership team, dedicated employees, and an opportunity to capitalize on the tailwinds driving demand for reliable power solutions.

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Platinum Equity will work with the management team to continue investing in the company's human capital, infrastructure, customer and vendor partnerships, and growth.

Kohler Energy will provide solutions for home energy, industrial energy systems, and powertrain technologies, with a portfolio of brands including Power Systems, Home Energy, Kohler Uninterruptible Power, Clarke Energy, Heila Technologies, Curtis Instruments, and Engines.

Platinum Equity is a global investment firm with more than $48 billion of assets under management, and has experience acquiring and operating global businesses that have been part of large corporate entities.

The deal was announced as Kohler celebrated 150 years of manufacturing power and energy systems in various industrial sectors, including maritime and offshore.

Kohler Energy supplies generator sets, engines, and other prime and back-up power solutions and electrified powertrain technologies worldwide.

Platinum Equity's Co-President Jacob Kotzubei said the firm is committed to strengthening Kohler Energy's position as an industry leader and investing in the development of new generation of innovative energy resilience solutions.

The energy resilience business has strong technical capabilities and an opportunity to benefit from attractive tailwinds driving a sustained need for reliable power solutions in industrial, commercial, residential, and equipment applications.

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Platinum Equity has 28 years of experience acquiring and operating global businesses that have been part of large corporate entities, and has acquired businesses from companies like Ball Corp, Emerson Electric, Ingersoll Rand, and Johnson & Johnson.

Kohler's Chair and CEO David Kohler will remain on the board of Kohler Energy once it becomes an independent company.

Platinum Equity's Managing Director Matthew Louie said the firm is thrilled to work with Brian and the management team to continue investing in the company's human capital, infrastructure, customer and vendor partnerships, and growth.

The deal was facilitated by financial advisors BDT & MSD Partners and BofA Securities, and legal advisors White & Case for Kohler, and Goldman Sachs & Co, William Blair & Co, Gibson, Dunn & Crutcher, and Willkie Farr & Gallagher for Platinum Equity.

Kohler Company will outsource the majority of its energy division to Platinum Equity, a global investment firm managing about $47 billion in assets.

Platinum Equity will become the majority investment partner of Kohler Energy, encompassing Power Systems, Engines, Home Energy, and other businesses, starting in mid-2024.

David Kohler, Kohler Co. chair and CEO, said the decision was a “bold and strategic move for the future of our company.” He believes the timing is right due to the strength of the energy business, which is driven by world-class products manufactured and sold by highly skilled associates.

The deal will allow Kohler to focus on its Kitchen & Bath and Hospitality businesses, while Platinum Equity will help Kohler Energy reach its full potential as a standalone company.

Platinum Equity was selected due to its “deep operational expertise and successful track record with carve-out transactions,” a news release said. It has acquired businesses from Johnson & Johnson and Caterpillar, among other companies.

Brian Melka, who will become the CEO of Kohler Energy, said the company is excited for this next phase of growth with Platinum Equity as a partner. The demand for resilient energy is growing, and Kohler Energy is well-positioned to capitalize on this trend.

Platinum Equity is a global investment firm with more than $48 billion of assets under management, and it has experience in the industrial products sector. It has held ownership stakes in several equipment rental companies and manufacturers that are suppliers to the rental industry.

The deal is expected to be finalized in Q2 2024, and Kohler will remain involved in the energy sector. David Kohler will serve on the board of Kohler Energy, and the company will work with Platinum Equity to ensure a smooth transition.

Platinum Equity Managing Director Matthew Louie said the energy resilience business has strong technical capabilities and an opportunity to benefit from attractive tailwinds driving a sustained need for reliable power solutions in industrial, commercial, residential, and equipment applications.

Kohler Energy provides solutions for home energy, industrial energy systems, and powertrain technologies, and its portfolio of brands includes Power Systems, Home Energy, Kohler Uninterruptible Power, Clarke Energy, Heila Technologies, Curtis Instruments, and Engines.

The deal allows Kohler to focus on its other businesses and drive growth within its respective industries, while Platinum Equity will help Kohler Energy reach its full potential as a standalone company.

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