Gryphon Investors Completes Successful Sale of Kano Laboratories

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Dec 18, 2024, 07:00 ET

Exits Iconic Premium Branded Chemicals Platform After ~3x Revenue Growth During Gryphon's Ownership

SAN FRANCISCO, Dec. 18, 2024 /PRNewswire/ -- Gryphon Investors ("Gryphon"), a leading middle-market private equity firm, announced today the sale of Kano Laboratories ("Kano" or "the Company"), a leading branded manufacturer of premium industrial penetrants and synthetic greases. Terms of the transaction were not disclosed.

Founded in 1939, Kano is a leading manufacturer of iconic Kroil®-branded penetrating oils used to loosen corroded metal parts. In early 2024, Kano acquired Synco Chemical Corporation, a manufacturer of food-grade greases, oils, and lubricants sold under the Super Lube brand. The Company serves diverse professional users in the industrial maintenance, repair, and operations ("MRO") sector and specialty trades. Over the Company's longstanding history, both brands have developed a passionate, enthusiastic customer base for their best-in-class products, which professionals and DIY enthusiasts trust to solve high-cost, mission-critical problems.

Keith Stimson, Deal Partner and Co-Head of Gryphon's Heritage Group, said, "We are proud to have realized our vision of building on the impressive history of the iconic 85-year-old Kroil brand, positioning it for continued success as a market-leading platform of branded MRO chemicals. During our four-year hold, we built a terrific management team and collaborated with them to institute a sophisticated go-to-market strategy, enter new distribution channels, and build out our product portfolio through the acquisition of Super Lube. We were able to establish Kano as a scarce and scalable platform that is well poised to execute on many exciting growth opportunities ahead."

Kano CEO Mark Klein commented, "Our partnership with Gryphon allowed us to transform the business as we scaled and solidified our place as a leader in premium branded penetrants, lubricants and greases. The Gryphon operating resources we were able to collaborate with were truly value-add and helped us set and execute on a distinctive growth strategy including successfully penetrating more trade channels."

BMO served as Gryphon's lead financial advisor, and Houlihan Lokey served as financial advisor. Kirkland & Ellis acted as Gryphon's legal advisor.

About Gryphon Investors
Gryphon Investors is a leading middle-market private investment firm focused on profitably growing and competitively advantaged companies in the Business Services, Consumer, Healthcare, Industrial Growth, Software, and Technology Solutions & Services sectors. With approximately $9+ billion of assets under management, Gryphon prioritizes investments in which it can form strong partnerships with founders, owners, and executives to accelerate the building of leading companies and generate enduring value through its integrated deal and operations business model. Gryphon's highly differentiated model integrates its well-proven Operations Resources Group, which is led by full-time, Gryphon senior operating executives with general management, human capital acquisition and development, treasury, finance, and accounting expertise. Gryphon's three core investment strategies include its Flagship, Heritage, and Junior Capital strategies, each with dedicated funds of capital. The Flagship and Heritage strategies target equity investments of $50 million to $500 million per portfolio company. The Junior Capital strategy targets investments of $10 million to $25 million in junior securities of credit facilities, arranged by leading middle-market lenders, in both Gryphon-controlled companies, as well as in other private equity-backed companies operating in Gryphon's targeted investment sectors.