DENVER--(BUSINESS WIRE)--KRG Capital Partners (“KRG”) announced today that it has acquired Palladium Energy, Inc. (“Palladium”), an industry leader in customized power solutions. This marks KRG’s second investment in its portable power solutions buy-and-build strategy, which began in 2014 with the acquisition of ICCNexergy, Inc. (“ICCN”), a global leader in the design and manufacture of rechargeable power systems. KRG has combined these two Chicago-based companies to create one of the world’s largest portable power solutions providers. This newly formed company remains technology agnostic and continues building on its deep roots in four markets—commercial, industrial, medical and military/government. The company will be rebranded in the near future to leverage the combined rich history, markets and products delivered. Terms were not disclosed.
“ICCNexergy’s merger with Palladium is transformative and consistent with the Company’s strategic plan to establish a clear leadership position in this growing industry. The combination with Palladium will enhance product design, development and production capabilities to better serve the increasing requirements of our global customers. The collective company will have more than 300 degreed engineers with an extensive manufacturing and supply chain footprint across North America, Asia, South America and Europe,” said Stew Fisher, Managing Director of KRG.
“The transaction will generate significant efficiencies, allowing us to better serve our customers. The merger with Palladium will add U.S.-based and China-based engineering groups to combine with ICCN’s engineering team to better support customers’ increasing global needs,” said Ted Nark, Managing Director of KRG.
ICCNexergy is a portfolio company of KRG Capital Partners Fund IV (“KRG”) that was acquired in March of 2014. The acquisition of Palladium represents the 217th investment for KRG since inception.
KRG and ICCNexergy were represented by Kirkland & Ellis (legal) and Horwood Marcus & Berk (legal). Golub Capital acted as Administrative Agent, Sole Bookrunner and Co-Lead Arranger on the financing along with Ally Bank as Co-Lead Arranger and Syndication Agent and NewStar Financial, Inc. as Documentation Agent. Jefferies LLC acted as sole financial advisor to Palladium Energy.
About ICCNexergy: ICCNexergy, Inc. is a global developer and manufacturer of innovative power solutions. Founded in 1967 and headquartered in Westchester, Ill., the company leads the industry with expertise in designing and manufacturing custom rechargeable power systems including: Lithium-ion battery packs, battery chargers, docking stations, and highly efficient power supplies. Its partners include major OEMs in the commercial, industrial, medical and military markets.
With wholly owned manufacturing space in the United States, China and Mexico, and a full suite of in-house design, tooling, and test capabilities, ICCNexergy is capable of managing complex programs from design through production around the world. For more information visit www.iccnexergy.com.
About Palladium Energy: Palladium Energy, founded in 1973, is a leading global provider of high-performance power solutions including custom battery packs, power supplies and electromechanical assemblies for a wide variety of markets including medical, military, commercial, industrial and consumer electronics.
With headquarters in Woodridge, Ill. and manufacturing facilities in the United States, Brazil and China, Palladium combines decades of technology expertise with innovative and flexible engineering, testing and manufacturing capabilities to meet any power challenge. For more information visit www.palladiumenergy.com and follow @PalladiumEnergy on Twitter.
About KRG: Founded in 1996, KRG is a Denver-based private equity firm with $4.3 billion of capital either deployed or available for future investment, which includes approximately $1 billion deployed since inception on behalf of equity co-investors. KRG specializes in acquiring majority interests in middle-market companies and growing them into significantly larger enterprises through the combination of internal growth and selective strategic add-on acquisitions. KRG Capital seeks investment opportunities where we can partner with existing management teams that are committed to building best-in-class industry leading companies. Since inception, KRG has invested in 46 platform companies and has completed 171 add-on acquisitions for those platforms. More information on KRG is available at www.krgcapital.com.