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Platinum Equity to Acquire Kohler's Generators Division

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Platinum Equity to Acquire Kohler's Generators Division

Platinum Equity has reached an agreement to acquire Kohler Co.'s generators division, which manufactures generators for personal, residential, and industrial use. Kohler announced the establishment of a new unit called Kohler Energy, with Platinum as its majority investment partner. The financial details of the transaction were not disclosed, but it was reported that Platinum was in advanced talks to acquire the division for over $3 billion. Kohler, founded in 1873, is renowned for its kitchen and bath products, power systems, engines, and tiles. The generators division produces a range of units, all designed and assembled in the United States. The businesses included in the new Kohler Energy portfolio encompass Power Systems, Engines, Home Energy, Kohler Uninterruptible Power, Clarke Energy, Curtis Instruments, and Heila Technologies. Platinum Equity, currently in the process of raising its sixth buyout fund, has recently made other notable acquisitions, including a stake in US LBM from Bain Capital and the lead bid for Jacobs Solutions Inc.'s Critical Mission Solutions unit. Goldman Sachs Group Inc. and William Blair & Co. served as advisors to Platinum Equity, while BDT & MSD Partners and Bank of America Corp. worked with Kohler. In conclusion, Platinum Equity's acquisition of Kohler's generators division marks a significant development in the energy sector. The deal brings together two prominent players and expands Platinum's portfolio in the industry.

A Hot Take on Platinum Equity's Acquisition of Kohler's Generators Division

Platinum Equity's acquisition of Kohler Co.'s generators division could have significant implications for new businesses in the energy sector.

Market Consolidation

This deal represents a form of market consolidation, with Platinum Equity enhancing its portfolio in the energy sector. For new businesses, this could mean increased competition, as Platinum's expanded portfolio may allow it to offer a broader range of products and services.

Supply Chain Impacts

The acquisition could also impact supply chains. Kohler's generators are all designed and assembled in the United States, which could have implications for businesses that rely on these products. New businesses may need to reassess their supply chains in light of this acquisition.
Investment Opportunities
The deal also highlights the ongoing investment opportunities in the energy sector. Platinum Equity is currently raising its sixth buyout fund and has made several notable acquisitions recently. This suggests a positive investment climate in the energy sector, which could be beneficial for new businesses seeking funding. In conclusion, Platinum Equity's acquisition of Kohler's generators division represents a significant development in the energy sector. While it could lead to increased competition and supply chain impacts, it also highlights the ongoing investment opportunities in this sector. New businesses should closely monitor these developments and adjust their strategies accordingly.
Story First Published at: https://financialpost.com/pmn/business-pmn/platinum-equity-agrees-to-buy-kohlers-generators-division
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