Kohler to establish energy division as independent business

November 7, 2023 By    

Kohler Co. made the strategic decision to set Kohler Energy up as a separate, independent business, with Platinum Equity engaged as the majority investment partner.

Photo courtesy of Kohler

Photo courtesy of Kohler

Kohler will continue to stay invested in the energy business following the closing and says it remains committed to supporting its upward trajectory built on a proven track record of strong performance in the global energy resilience marketplace. The businesses included in the portfolio are Power Systems, Engines, Home Energy, Kohler Uninterruptible Power, Clarke Energy, Curtis Instruments and Heila Technologies.

While Kohler Co. and Platinum Equity must complete several milestones and legal requirements, including consultations with employee works councils, the transaction is expected to close in the first half of 2024. Until then, Kohler Co. will operate as one company.

“Today we took a bold and strategic move for the future of our company,” says David Kohler, chair and CEO of Kohler Co., noting how the company looks to deepen its focus and investment in its kitchen and bath and hospitality businesses and continue to drive growth within its respective industries.

Kohler Energy provides power solutions to homes, businesses and equipment. Its portfolio includes backup and prime power equipment, traditional and electrified powertrain technologies, and home energy solutions.​

Brian Melka, group president of Kohler Energy, will serve as CEO of the energy business, with David Kohler, chair and CEO of Kohler Co., serving on its board.

Platinum Equity, a global investment firm with about $47 billon of assets under management, has 28 years of experience acquiring and operating global businesses that have been part of large corporate entities. In recent years, the firm has acquired businesses from firms like Ball Corp., Caterpillar, Emerson Electric, Ingersoll Rand and Johnson & Johnson.

“The energy resilience business has outstanding leadership, strong technical capabilities and an opportunity to benefit from attractive tailwinds driving a sustained need for reliable power solutions in industrial, commercial, residential and equipment applications,” says Platinum Equity Managing Director Matthew Louie. “We look forward to working with Brian and the management team to continue investing in the business and maximizing its potential.”

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About the Author:

Brian Richesson is the editor in chief of LP Gas Magazine. Contact him at brichesson@northcoastmedia.net or 216-706-3748.

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