Pacific Avenue Capital Partners Approved to Acquire Kidde-Fenwal Business
LOS ANGELES, April 2, 2024 (Newswire.com) - Pacific Avenue Capital Partners (“Pacific Avenue”), a Los Angeles-based private equity firm focused on corporate carve-outs and other complex situations in the middle market, is excited to announce that the United States Bankruptcy Court for the District of Delaware has approved the sale of substantially all of the assets of Kidde-Fenwal, Inc. (the “Company” or “Kidde-Fenwal”) and certain contributed assets to an affiliate of Pacific Avenue. The Company is a global leading provider of fire suppression systems and controls with an extensive distribution network and strong OEM relationships across diversified end markets and geographies. The Company is headquartered in Ashland, Massachusetts, and includes facilities in the United States, United Kingdom, and India. The transaction is subject to the satisfaction of customary closing conditions.
Kidde-Fenwal operates through two distinct market leading brands, Kidde Fire Systems (“KFS”) and Fenwal Controls (“Fenwal”). KFS produces highly engineered fire suppression, detection, and control systems in the industrial, commercial, and marine end markets. Fenwal serves OEMs in diverse end markets with products for gas ignition, temperature control, and fire and overheat detection.
The acquisition of Kidde-Fenwal is another example of Pacific Avenue’s ability to navigate complex transactions and collaborate with corporate parents to successfully execute carve-outs of non-core business units. Under Pacific Avenue’s stewardship, the Company will focus its efforts on further serving customer needs and executing on numerous growth prospects available in the fire suppression and controls market.
“We are excited about the Kidde-Fenwal investment and the Company’s ability to capitalize on growing demand for fire suppression and controls across multiple end markets and geographies. These are highly regarded brands in the industry, and through their market-differentiated engineering expertise, provide best-in-industry fire safety and controls products. With the restructuring process behind it, we look forward to refocusing the Company on organic growth and executing with renewed energy to serve customers.” – James Oh, Partner at Pacific Avenue
“This acquisition demonstrates that Pacific Avenue is the premier buyer in complex situations in the middle market. Our ability to effectively navigate the competitive bidding process, inherent in a sale under Section 363 of the Bankruptcy Code, and to effectuate a global carveout transaction on an expedited timeline enabled our success. We are excited to partner with Kidde-Fenwal to unlock the Company’s next phase of growth.” – Chris Sznewajs, Founder and Managing Partner of Pacific Avenue
The transaction is expected to close in the third quarter of this year, and will be an investment of Pacific Avenue Fund I, L.P.
Pacific Avenue was advised by Stifel, Nicolaus & Company, Incorporated as financial advisor and Raines Feldman Littrell LLP as legal advisor.
About Pacific Avenue Capital Partners
Pacific Avenue Capital Partners is a Los Angeles-based private equity firm focused on corporate divestitures and other complex situations in the middle market. Pacific Avenue has extensive M&A and operations experience, allowing the firm to navigate complex transactions and unlock value through operational improvement, capital investment, and accelerated growth. The members of the Pacific Avenue team have closed over 105 transactions, including over 40 corporate divestitures, across a multitude of industries throughout their combined careers. Pacific Avenue takes a collaborative approach in partnering with strong management teams to drive lasting and strategic change while assisting businesses in reaching their full potential. Pacific Avenue has more than $1.2B of Asset Under Management (AUM). For more information, please visit www.pacificavenuecapital.com.
Source: Pacific Avenue