Fort Worth-based KPS Global, a provider of custom insulated panel systems, has been sold to the Germany-based Viessmann Generations Group, a purpose-driven family company with a 107-year history.

New York City-based D Cubed Group, a long-duration private market investor backed by high-net-worth business founders and executives, announced the sale. The transaction, which represents a return to D Cubed investors of over 6x, is expected to close in the next 90 days.

Terms of the deal were not disclosed.

With over 800 employees nationally, KPS Global operates over 725,000 combined square feet of manufacturing space in five manufacturing and warehousing facilities in Texas, California, Arizona, Tennessee, and Georgia.

“I joined KPS Global because D Cubed had a clear vision and a willingness to invest capital, effort and resources to build a company truly beyond what ever existed in this industry,” KPS Global CEO Mike Eakins said in a statement. “Together, we’ve built something special that has differentiated KPS Global in the market that not only delivers what our customers need today but is also continuously developing innovative solutions they will need in the future.” 

A 9-year journey of ‘disciplined business building’ 

KPS Global operates facilities five states. [Photo: KPS]

KPS Global was created by D Cubed Group in 2015 via the simultaneous acquisitions of Hill Phoenix’s Walk-Ins business from Dover Corp. and Kysor Panel Systems from The Manitowoc Co. Inc. Since then, the combined, privately held company has been built into a world-class organization with an experienced leadership team, as well as leading edge technology, business intelligence, and award-winning innovations that have set the standard for the industry, D Cubed said.

KPS Global now is a more-than $400 million revenue company and is a market leading provider of custom insulated panel systems to companies in all areas of food retail as well as the scientific and cold storage markets. The company said this transaction marks a transition after nearly a decade of significant revenue growth, increased profitability, and product expansion.

“From the beginning, we saw an opportunity to bring significant investment, engagement, and a long-term orientation to combine two market leaders and build a company with a singular focus, world-class innovation and execution capabilities, and resourcing it to grow further through proprietary offerings and diversifying the markets it served,” D Cubed Managing Director Glenn Kaufman said in a statement. “Through our investment in talent, systems, business intelligence, and innovation, as well as our partnership with management, KPS Global has become the clear market leader and stands apart from competitors based on its end-to-end and fully custom capabilities, differentiated offerings, and proven ability to grow in multiple markets.”

Kaufman continued: “Identifying and investing into such off-market opportunities, and then driving and supporting business improvement and growth is exactly what D Cubed’s private-market investment model is all about.”

Kaufman said KPS has been a successful undertaking.’

“The most successful business-building generally doesn’t happen in artificial three-to-five-year windows. It takes focus, engagement and investment. And it takes knowing you can and will apply those things for the time needed to drive results and returns. The nine years of involvement with KPS Global exemplifies our true north: disciplined business building to create and grow great companies, which results in outsize long-term returns,”

Next chapter with Viessmann

Viessmann is a global, broadly diversified and purpose-driven family business for responsible capital.

“We recognize D Cubed’s tremendous accomplishment in creating and building KPS Global to where it is. We see an incredible opportunity to build on that and support the Company to further extend its ongoing growth within and beyond its core market,” Viessmann CEO Max Viessmann said in a statement. “We’re excited to work together with the company’s proven management to further drive value creation.”

Eakins said the deal bodes well for KPS’ future.

“I am excited about working with another long-term oriented, business-building partner to continue to build and grow as we have, while maintaining our commitment to our customers, employees and vendors,” Eakins said. “The entire leadership team looks forward to working with Viessmann and will remain invested in the company.”

Kaufman said he takes pride in what was accomplished with KPS.

“Together with a great management team, who have been partners in every sense, we accomplished our plan to build KPS Global to operate at an entirely different level than had previously existed in its sector, and to grow in its historical market and markets beyond. We take tremendous pride in what has been accomplished with this investment, in the team and in what the company has become. We are excited to see how the business continues to grow over the long-term,” Kaufman said.

KPS Global will continue to be led by its existing management team and operate through its headquarters and a newly built innovation center in Fort Worth and manufacture product from its five strategically located facilities.

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