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Kohler To Outsource Energy Division
Kohler Co. will outsource the majority of its energy division to an investment firm. Platinum Equity, which manages about $47 billion in assets, will become the majority investment partner of Kohler Energy—encompassing Power Systems, Engines, Home Energy, Kohler Uninterruptible Power, Clarke Energy, Curtis Instruments and Heila Technologies—starting in mid-2024, when the deal is expected to close.
David Kohler, Kohler Co. chair and CEO, says the decision was a “bold and strategic move for the future of our company.”
“Over the last 150 years, Kohler has embraced a relentless pursuit of providing exceptional products, services, and experiences for our customers,” he adds. “This important moment in our journey signifies our commitment to deepening the focus and investment in Kohler’s Kitchen & Bath and Hospitality businesses and continuing to drive growth within our respective industries. 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.”
Platinum Equity was selected due its “deep operational expertise and successful track record with carve-out transactions,” and it has acquired businesses from Johnson & Johnson and Caterpillar, among others.
After the deal closes, David Kohler will serve on the board. Brian Melka will move from group president to CEO for Kohler Energy. Next steps include consulting with the union representatives, among other legal requirements.
“We appreciate Kohler’s confidence in our ability to build on that legacy and support the energy business’s continued growth and expansion as a standalone company,” Platinum Equity Co-President Jacob Kotzubei comments. “We have great respect for David and the Kohler leadership team and are proud to be their partners.”
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