October 3, 2019
New York, NY – Kinderhook Industries, LLC (“Kinderhook”) announced today the acquisition of Copperweld Bimetallics LLC (“Copperweld” or the “Company”). Financial terms of the transaction were not disclosed.
Headquartered in Fayetteville, Tennessee, Copperweld is the leading supplier of bimetallic wiring products and the only domestic producer of copper clad steel (“CCS”) and copper clad aluminum (“CCA”) wire. Copperweld’s CCS and CCA products are well-positioned based on product material characteristics (e.g., weight, durability, theft deterrence, etc.) and cost advantages to take market share from traditional copper wiring products.
Historically a supplier of bimetallic wire to the telecommunications industry, Copperweld has expanded into new markets in recent years, supplying CCS and CCA wire to the automotive, power grid, building wire and specialty wire sectors. In particular, the electrification of vehicles is expected to rapidly grow the copper content in vehicles, causing OEM’s to search for lighter and cheaper materials, a trend Copperweld expects to benefit from.
Copperweld will continue to operate under its current management team following the transaction. “Kinderhook is an ideal partner for Copperweld and shares our vision for the future growth of the Company,” said Craig York, Chief Executive Officer of Copperweld. “We are all very excited about the next chapter as we continue to broaden our customer base, expand our capabilities and prove the superiority of our products in a wide range of applications.”
“Copperweld’s proprietary manufacturing and differentiated products provide the Company with an array of compelling growth avenues to pursue, particularly in the automotive arena where the advent of electric vehicles is pushing auto manufacturers to find lighter and cheaper wiring alternatives to copper,” said Paul Cifelli, Managing Director at Kinderhook. “We are excited to welcome Copperweld to the Kinderhook portfolio and look forward to building the business in partnership with Craig and his team.”
“Craig and his team have done an outstanding job positioning the business to penetrate numerous attractive untapped specialty end markets,” said Nate Druckenmiller, Vice President at Kinderhook. “We are thrilled to have the opportunity to work with Copperweld and to accelerate its recent growth trajectory as it continues to diversify its sector focus and differentiated offerings.”
Kirkland & Ellis LLP served as legal counsel to Kinderhook. Financing for the transaction was provided by Twin Brook Capital Partners.
For additional information about this transaction, please contact:
+1 (212) 201-6797
+1 (212) 201-6791