Tinicum acquires controlling interest in KGM from Compass Group Equity Partners

Tinicum L.P. and affiliated funds managed by Tinicum Incorporated have acquired a controlling interest in KGM, a Tulsa, Oklahoma-based leader in the distribution of natural gas products. The announcement was made jointly by both companies, although the financial details of the transaction were not disclosed. Management shareholders of KGM have retained a significant interest in the company, ensuring continuity in leadership and strategic direction.

KGM is renowned for its comprehensive range of products and services aimed at utilities and commercial & industrial customers, including gas meters, instruments, regulators, valves, and other related equipment and parts. The company is also noted for its value-added services such as technical support, training, testing and calibration, and product repair and refurbishment.

Strategic Growth and Enhanced Capabilities

Tim Wood, CEO of KGM, expressed enthusiasm about the new partnership with Tinicum. “This marks an exciting new chapter for KGM. Tinicum’s family heritage and focus on long-term business building are an excellent fit for our company and industry,” said Wood. He highlighted the past success brought about by Compass Group’s partnership, which significantly drove the company’s growth and is optimistic that the new ownership will continue to foster further development in team capabilities, product offerings, and facilities.

Trip Zedlitz, a partner at Tinicum, commended the KGM management team’s efforts in establishing the company as a pivotal player in the natural gas distribution sector. “KGM has valuable long-term partnerships with its OEM suppliers and customers and a differentiated ability to deliver individualized and comprehensive customer solutions with industry-leading product availability and technical expertise,” Zedlitz commented. He looks forward to building upon the strong foundation that KGM has established.

Continued Partnerships and Future Prospects

Chris Gibson, Managing Partner at Compass Group, reflected on the transition positively, emphasizing the growth and personal connections fostered during their partnership with KGM. “Our partnership with KGM epitomizes what we’re all about at Compass Group – partnering with great companies in mid-America and driving growth in both their business and in their people,” said Gibson.

Legal and Financial Framework

The transaction was facilitated by several key players in the legal and financial sectors. Goodwin Procter represented Tinicum, while BMO and Citizens Bank led the financing for the transaction. McGuireWoods represented KGM, with Piper Sandler acting as its exclusive financial advisor, ensuring a smooth transition and continued prosperity for KGM under the new ownership.