The owner of flow control and automation platform Flow Control Group will sell a “significant” stake in the business to a fellow investment firm, officials announced Thursday.
KKR, which acquired FCG five years ago, said in a statement that Neuberger Private Markets agreed to a deal to “jointly acquire” the company, although funds managed by KKR will maintain majority ownership. Neuberger, in turn, will have a “significant” minority interest.
Financial details of the deal, which is expected to close in the second quarter of the year, were not disclosed, but KKR officials said that FCG’s more than 3,000 employees are set to receive cash payments under an employee-ownership program enacted in 2021.
“KKR has played a critical role in supporting our growth, and we are excited to welcome Neuberger as we continue to expand our capabilities, invest in our team, and pursue new opportunities across our markets,” FCG President and CEO Raymond Aronoff said in a statement.
“We are proud of the progress achieved to date and look forward to strategically partnering with Neuberger’s Private Markets team, FCG’s management team, and the many highly engaged employee-owners to support the company’s next phase of growth,” added KKR Partner Josh Weisenbeck.
