Red Arts Capital’s acquisition marks a strategic expansion into advanced manufacturing.
Red Arts Capital (“Red Arts”), a leading investment firm specializing in supply chain-related and logistics businesses, today announced the acquisition of KKSP Precision Machining, LLC, (“KKSP”), a premier North American producer of custom turned metal components. This acquisition marks Red Arts’ entry into advanced manufacturing, leveraging its deep expertise to expand into a strategically aligned domain.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241219096354/en/
Red Arts’ investment recapitalizes KKSP to support the company’s continued growth and innovation, including KKSP’s acquisition of Hy-Production, Inc. (“Hy-Pro”), a vertically-integrated, industry-leading contract manufacturer specializing in highly complex, mission-critical precision-machined components and value-added assemblies primarily serving the industrial, agricultural, construction, and mobile hydraulics markets.
KKSP is led by one of Red Arts Capital’s Senior Operating Partners, Nelda Connors, who serves as KKSP’s Chairwoman and CEO. Ms. Connors is a seasoned operator with three decades of experience in the industrial, manufacturing, and automotive industries, and who currently serves as a board director at several leading companies, including Arconic Corporation, and Zebra Technologies.
“We are pleased to welcome KKSP into our growing portfolio under Ms. Connors’ leadership,” said Nicholas Antoine, Co-Founder and Managing Partner of Red Arts. “KKSP’s rich history in precision machining complements our vision of building a diversified portfolio of supply chain-related businesses, and we could not have found a better partner than Ms. Connors.”
Chad Strader, Co-Founder and Managing Partner of Red Arts, added, “This acquisition marks a pivotal step for us, expanding our footprint into advanced manufacturing, a sector that aligns well with our expertise in supply chains and logistics. We are excited to explore the opportunities this new domain offers.”
Established in 1968, KKSP Precision Machining has produced screw machine parts for its customers for more than 50 years. With over 425 screw machines in four locations in the United States and Mexico, KKSP uses its significant scale, deep technical expertise, and highly focused operating strategy to deliver value stream advantages to all customers.
“I’m excited about the value we will create at KKSP for our customers,” said Ms. Connors. “Hy-Pro unlocks increased capabilities that position KKSP for continued organic growth and additional add-on acquisitions. I look forward to leading the company through this next chapter and working hand in hand with Red Arts to realize KKSP’s full potential.”
Hy-Pro offers customers a streamlined, single-source solution for production-ready parts. As customers seek increasingly complex precision machining solutions, the acquisition of Hy-Pro strengthens KKSP’s ability to continue meeting new and evolving customer demands.
About Red Arts Capital
Based in Chicago, Illinois, Red Arts Capital is a leading investment firm with over $300 million in assets under management, with a focus on supply chain-related and logistics businesses. Red Arts Capital seeks to partner with and invest in proven, successful businesses that are uniquely positioned in their market and led by superior management teams to execute the value creation strategy and generate strong shareholder returns. With sector expertise and a commitment to responsible stewardship and excellence, Red Arts Capital supports its portfolio companies through its operational playbook, world-class network of operating partners, advisory councils and supply chain expertise.
About KKSP Precision Machining, LLC
Headquartered in Glendale Heights, IL, KKSP is one of the largest manufacturers of machined metal components produced primarily on automatic screw machines. Founded in 1968, the company has evolved into a leading player in the precision turned components industry with facilities in Illinois, Wisconsin, Michigan, Mexico, and Connecticut. KKSP produces over 300 million parts annually to exacting print specifications for a diverse customer base including HVAC, fire suppression, appliance, defense, automotive, heavy truck, plumbing, medical and marine industries.
About Hy-Production, Inc.
Founded in 1966 and headquartered in Valley City, Ohio, Hy-Pro is a vertically-integrated, industry-leading contract manufacturer specializing in highly complex, mission-critical precision-machined components and value-added assemblies primarily serving the industrial, agricultural, energy, construction, and mobile hydraulics markets. Hy-Pro produces over 1 million parts annually to demanding specifications based on customer-provided designs. In addition to providing primary and secondary machining for its customer base, Hy-Pro offers sophisticated assembly & testing capabilities.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241219096354/en/
