TULSA: Tinicum L.P., along with funds managed by Tinicum Incorporated, has taken a controlling interest in KGM, a Tulsa-based distributor of natural gas products. The acquisition, which sees management shareholders retaining substantial stakes, was facilitated without disclosing the financial specifics.

KGM, known for its comprehensive range of gas meters, instruments, regulators, and valves, serves a critical role in supplying utilities and commercial entities. The company’s suite of value-added services, including technical support and product refurbishment, positions it as a key player in the industry.

The CEO of KGM, Tim Wood, expressed enthusiasm about the new phase under Tinicum’s stewardship, citing the alignment of Tinicum’s long-term business vision with KGM’s growth trajectory. Wood acknowledged the pivotal role of Compass Group Equity Partners in KGM’s expansion and anticipates further advancements in the company’s offerings and capabilities through the new partnership.

Trip Zedlitz, a partner at Tinicum, praised KGM’s team and business model, committing to enhance the company’s established foundation. He highlighted KGM’s unique position in delivering tailored solutions backed by robust product availability and technical know-how.

Chris Gibson, Managing Partner at Compass Group, reflected on the fruitful collaboration with KGM, emphasizing the firm’s focus on fostering growth in American businesses and their workforce. The transition to Tinicum is seen as a continuation of KGM’s success story.

Legal and financial advisement for the transaction was provided by Goodwin Procter for Tinicum, with BMO and Citizens Bank spearheading the financing. McGuireWoods represented KGM, and Piper Sandler acted as the exclusive financial advisor.

The acquisition marks a strategic move for Tinicum, a family-founded private partnership managing a diverse portfolio since 1974, and Compass Group, a private equity firm renowned for nurturing lower middle-market companies since 2014. Both entities share a commitment to driving long-term value through strategic partnerships and operational excellence.

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