NEW YORK - Global investment firm KKR has acquired Marmic Fire & Safety, a leading fire protection service provider in the United States. The company was purchased from HGGC, though financial details of the transaction have not been disclosed.
Marmic, founded in 1951, offers essential inspection, testing, and maintenance services for fire safety equipment. Its services are critical for adhering to local and national fire codes and regulations. It serves a broad customer base, including commercial, industrial, and government sectors, with over 56,000 clients nationwide.
Greg Bochicchio, CEO of Marmic, expressed enthusiasm for the new partnership with KKR, highlighting the shared values of an employee-centric culture and the ambition to grow Marmic into a scaled fire safety services platform.
KKR's investment strategy includes the implementation of a broad-based employee ownership program at Marmic. This move is part of a larger belief that employee engagement is crucial for building stronger companies. KKR has a history of awarding equity value to non-senior management employees across its portfolio companies.
The investment in Marmic was made through KKR's Ascendant Strategy, which focuses on mid-market businesses in North America. Marmic will continue to operate as an independent company with KKR's backing.
Advisors to KKR on the deal included Houlihan Lokey (NYSE:HLI) and Latham & Watkins LLP.
KKR is known for its alternative asset management and offers a range of financial services including capital markets and insurance solutions. The firm has a diverse investment portfolio in private equity, credit, real assets, and hedge funds, with insurance subsidiaries providing retirement and reinsurance products.
This acquisition is based on a press release statement and reflects the ongoing investment activities by KKR in various sectors.
In other recent news, T-Mobile US (NASDAQ:TMUS) Inc. has formed a joint venture with KKR & Co. Inc. to acquire Metronet, a fiber internet company. The acquisition, which includes Metronet's broadband infrastructure and residential fiber business operations, is expected to close in 2025. In related news, KKR & Co. Inc. has reelected its Board of Directors, while Trinseo (NYSE:TSE) PLC has secured a $150 million financing agreement with KKR, extending the maturity of a previous agreement and providing increased financial flexibility.
Discover Financial Services (NYSE:DFS) has agreed to sell its student loan portfolio to Carlyle Group (NASDAQ:CG) and KKR in a deal valued at $10.8 billion. Furthermore, KKR, in partnership with Palm Capital, has acquired a logistics property in Greater Copenhagen, Denmark, expanding its European real estate portfolio. Investment firm Jefferies has raised the price target on KKR's shares to $126.00, maintaining a "Buy" rating. These are the highlights of recent developments involving these companies.
InvestingPro Insights
KKR's recent acquisition of Marmic Fire & Safety aligns with the firm's robust investment profile and strategic growth initiatives. A glance at KKR's financial health through InvestingPro's real-time data shows a solid market capitalization of $102.57 billion. The firm's commitment to shareholder value is evident, with a notable dividend growth of 12.9% over the last twelve months as of Q1 2024 and a consistent pattern of maintaining dividend payments for 15 consecutive years, as highlighted by InvestingPro Tips.
InvestingPro data further indicates that KKR's P/E ratio stands at 25.14, reflecting investor expectations of future earnings potential. Moreover, the company's strong revenue growth of 323.59% over the last twelve months as of Q1 2024 underscores its successful business operations and investment strategies. Additionally, KKR's performance is characterized by a high return, with a 95.8% one-year price total return as of the data provided, showcasing the firm's significant capital appreciation.
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