KKR to buy UK safety harness maker Capital Safety for $1.12 bn
29 Nov 2011
Private equity firm Kohlberg Kravis Roberts (KKR) yesterday struck a deal to buy UK-based safety harness maker Capital Safety Ltd from Arle Capital Partners for $1.12 billion.
The proposed acquisition comes just a week after KKR acquired US oil and gas company Samson Investments in a $7.2 billion deal, in the world's largest buy-out this year.
KKR outbid rivals Cinven Ltd and EQT Partners for Capital Safety, which was acquired by UK's Candover Investments from London-based Electra Private Equity in 2007 for $565 million. Arle Capital was spun out of Candover in April.
The sale will give Arle Capital a 2.7 times return on its initial investment more than four years ago.
Capital Safety produces safety and protection equipment for the construction and oil and gas industry. It is the world's leading designer and manufacturer of height safety and fall protection equipment with 20 operating sites worldwide including one in Chennai.
Under Arle Capital, Capital Safety doubled its revenues through aggressive research and development, which led to the launch of innovative first-in-the-industry products such as ExoFit NEX and i-Safe RFID equipment management system. It enhanced its global supply chain and expanded into emerging markets for fall protection equipment.