KKR, a leading global investment firm, today announced a strategic partnership with Amit Agarwal, a former senior executive of Thermo Fisher and Omega Engineering, and Andy Silvernail, KKR Executive Advisor and the former Chairman and CEO of IDEX Corporation, to acquire and build businesses in the Testing, Inspection, and Certification (“TIC”) industry.
KKR’s Ascendant strategy is committing up to $250 million in funding for the new executive-led platform, which will have a flexible mandate to invest in leading TIC outsourced services and instrumentation manufacturing and distribution capabilities for attractive end-markets. Mr. Agarwal will lead the platform as Chief Executive Officer, working closely with Mr. Silvernail, who will serve as Chairman.
“I am thrilled to collaborate with Andy and the KKR team to find, acquire and develop attractive businesses in the TIC industry, which is a more than $330 billion global market across instrumentation and services,” said Mr. Agarwal.1 “We believe our experience growing highly innovative and technical businesses positions us as a value-add strategic partner to TIC companies that provide specialized tools and services for sectors benefiting from attractive long-term tailwinds. I’m particularly encouraged by KKR’s approach to creating lasting value through shared ownership and employee engagement, which resonates with my approach to leadership.”
Mr. Silvernail, Mr. Agarwal and KKR plan to build a scaled TIC platform through multiple acquisitions and driving breakthrough operating performance. “I am excited to work together with Amit to build a leading business in the TIC industry. This is an attractive space, benefiting from mission critical products and services, favorable long-term growth trends and a fragmented market structure across both instrumentation and services,” said Mr. Silvernail.
The platform is part of KKR’s Ascendant strategy, which invests in middle market businesses in North America as part of KKR’s Americas Private Equity platform. KKR Ascendant pursues investments across seven dedicated industry vertical teams and seeks to deploy the full resources of KKR to support management teams in growing market-leading businesses.
“We look forward to working with Andy and Amit, both proven leaders and innovators, to acquire high quality businesses and build a scaled player in the TIC industry with an integrated suite of best-in-class capabilities,” said Brandon Brahm, Partner and Co-Head of KKR’s Ascendant strategy. “Executive-led platforms are an important element of our middle-market strategy and we believe KKR’s ability to recruit world-class talent creates exciting opportunities to build great companies in attractive, but historically fragmented industries.”
After completing a foundational acquisition, the platform intends to implement KKR’s broad-based employee engagement model to make all employees shared owners of the business. Since 2011, KKR has focused on employee engagement and ownership as a key driver in building stronger companies and driving greater financial inclusion. To date, KKR portfolio companies have awarded billions of dollars of total equity value to over 50,000 non-senior employees across nearly 30 companies, and KKR has committed to deploying this model in all control investments across its entire Americas Private Equity platform.
About Andy Silvernail
Mr. Silvernail brings over two decades of experience leading and managing large global companies and he became an Executive Advisor at KKR in 2022. He previously served as Chairman and CEO of Madison Industries, one of the world’s largest privately held companies and before that was Chairman and CEO of IDEX Corporation (NYSE:IEX) from 2011 to 2020. Mr. Silvernail has also held executive positions at Rexnord Industries, Newell Rubbermaid and Danaher Corporation. He currently serves on the Board of Directors of Stryker Corporation.
About Amit Agarwal
Mr. Agarwal has over two decades of experience at Thermo Fisher Scientific, Inc. (“Thermo Fisher”) (NYSE:TMO), most recently serving as Vice President of the company’s Water & Lab Products division. He joined Thermo Fisher in 1997 and over his career had held various senior leadership roles globally, including leading the company’s Australia / New Zealand business, Laboratory Solutions India, and Cole-Parmer. In 2020, Mr. Agarwal joined OMEGA Engineering, previously a division of Spectris plc (LSE:SXS) as President and CEO. In this role, he developed and implemented a strategy focused on introducing innovative products and establishing leadership in chosen applications for high-growth segments. Mr. Agarwal currently serves as a Trustee on the Board of Spectris Foundation, a STEM-focused charity based out of the U.K.
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
1 Testing, Inspection, and Certification Market Size in 2021 according to Straits Research (https://www.globenewswire.com/en/news-release/2022/08/24/2504121/0/en/Testing-Inspection-and-Certification-Market-Size-is-projected-to-reach-USD-457-Billion-by-2030-growing-at-a-CAGR-of-4-Straits-Research.html)
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