Greendale-based The Kinetic Co., Inc. has been acquired by Live Ventures Inc., a Las Vegas-based diversified holding company.
The Kinetic Co. is a manufacturer of more than 90 types of industrial knives and hardened wear products for the tissue, metals and wood industries.
Through one if its subsidiary companies – Pennsylvania-based Precision Marshall – Live Ventures acquired all of the outstanding stock of The Kinetic Co. The transaction is valued at $26 million and was financed with a combination of third-party bank and seller debt, a sale-leaseback of real estate, and cash from Live Ventures.
"We are enthusiastic about this transaction and believe it will be a positive move for our partners and customers and most importantly, for our employees. By joining with Precision Marshall, we expect to accelerate the growth of our business," said Cash Masters, president of the Kinetic Co. "We look forward to joining the Live Ventures and Precision Marshall team."
The acquisition of Kinetic is expected to increase the company's steel manufacturing segment's annual revenues by approximately $20 million, according to a news release. Kinetic will continue to operate as a standalone business as it has been since 1948. The company employs approximately 100 non-union employees. Its facility is 75,000 square feet and has been expanded four times in the last decade.
“We are excited to add the Kinetic platform to our growing steel manufacturing segment," said Jon Isaac, president and CEO of Live Ventures. “We believe Kinetic’s long-tenured family history and culture, combined with its recognized brand name and manufacturing footprint, are a great fit within the Live Ventures model. We look forward to continuing the rich legacy of Kinetic and maintaining its reputation, which comes from 70 plus years of commitment to its customers, employees, and community. We welcome all of the Kinetic employees to the Live Ventures family.”
Taureau Group, LLC and Davis & Kuelthau, s.c. represented The Kinetic Co., Inc. in the transaction.