KPS CAPITAL PARTNERS TO ACQUIRE CATALYST ACOUSTICS GROUP, INC.
A Leading Independent Designer and Manufacturer of Engineered Acoustical Solutions
New York, NY (September 30, 2024) -- KPS Capital Partners, LP (“KPS”) announced today that, through a newly formed affiliate, it has signed a definitive agreement to acquire Catalyst Acoustics Group, Inc. (“Catalyst” or the “Company”), a portfolio company of The Stephens Group, LLC, and a leading independent designer and manufacturer of engineered acoustical solutions. Completion of the transaction is expected in the fourth quarter of 2024 and is subject to customary closing conditions and approvals.
Catalyst provides best-in-class critical acoustical, seismic, vibration and noise control solutions across diverse end-markets. Catalyst is the parent company of a leading group of companies, including Frasch, IAC Acoustics, Kinetics Noise Control, Lamvin, Noise Barriers, RealAcoustix, Madrid and Sound Seal. Together, they offer the broadest portfolio of noise control solutions currently in the market. The independent brands, channels to market, products and services offered by each business remain unique, while leveraging the deep functional expertise, broad channel reach, significant financial resources and significantly larger scale of the combined company. Headquartered in Agawam, Massachusetts, the Company has approximately 550 employees and operates six strategically located manufacturing facilities across the United States, as well as a dedicated testing center.
Pierre de Villeméjane, Partner and Co-Head of KPS Mid-Cap Investments, said, “We are excited to acquire Catalyst, a differentiated acoustical solutions manufacturer with diverse capabilities, broad product development competencies and an attractive customer base with a best-in-class manufacturer representative network. We look forward to partnering with Chief Executive Officer, Joe Lupone, and the Catalyst team to accelerate growth opportunities driven by investment in the Company’s business and operations. Catalyst’s manufacturing expertise, commitment to quality and strong customer relationships, combined with KPS’ strategic, operational and financial resources on a global scale, provide an ideal platform for future growth. We intend to expand the business both organically and through strategic acquisitions.”
Joe Lupone, Chief Executive Officer of Catalyst, said, “KPS, with its demonstrated track record of manufacturing excellence is the ideal next owner of Catalyst as it enters this next phase of growth. We look forward to working closely together with KPS and our talented team to expand our technical leadership in acoustics technology and continue delivering new and exciting high-quality products and solutions that deliver significant value for our customers. Catalyst is well-positioned to benefit from strong growth potential driven by the ongoing adoption of acoustical solutions across diverse applications and leverage its unique position in the market.”
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS. Baird and Bryan Cave Leighton Paisner LLP served as financial advisor and legal counsel, respectively, to Catalyst.
About Catalyst
Catalyst Acoustics Group, Inc. is the parent company of a leading group of acoustic, seismic, vibration and noise control companies offering the broadest portfolio of noise control solutions currently in the market. The independent brands, channels to market, products and services offered by each business remain unique, while leveraging the deep functional expertise, broad channel reach, significant financial resources, and significantly larger scale of the combined company. For more information about Catalyst or its group of companies, visit www.catalystacoustics.com.
About KPS Capital Partners
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with approximately $21.4 billion of assets under management (as of September 30, 2024). For over three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment, and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better and generates investment returns by structurally improving the strategic position, competitiveness, and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies currently generate aggregate annual revenues of approximately $23.7 billion, operate 251 manufacturing facilities in 30 countries, and have approximately 65,000 employees, directly and through joint ventures worldwide (as of September 30, 2024, pro forma for recent acquisitions). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
KPS Mid-Cap focuses on investments in the lower end of the middle market that require up to $200 million of initial equity capital. KPS Mid-Cap targets the same type of investment opportunities and utilizes the same investment strategy that KPS’ flagship funds have for nearly three decades. KPS Mid-Cap leverages and benefits from KPS’ global platform, reputation, track record, infrastructure, best practices, knowledge and experience. The KPS Mid-Cap investment team is managed by Partners and Co-Heads Pierre de Villeméjane and Ryan Harrison, who lead a team of experienced and talented professionals.
