Harsco sells Houston-based flooring and fencing company

Michael Yoder//January 10, 2020

Harsco sells Houston-based flooring and fencing company

Michael Yoder//January 10, 2020

Harsco Corp. headquarters in Wormleysburg. (Photo: Submitted)

Harsco Corp. announced Friday that it sold its Houston-based metal flooring and fencing company, IKG, to a private equity company, KPS Capital Partners LP, of New York.

The $85 million deal in cash and notes is subject to post-closing adjustments. Harsco officials said they expect to use the net cash proceeds from the transaction to reduce debt and strengthen its balance sheet, while a $40 million note is expected to be paid over several years.

With the completion of the transaction, the Wormleysburg-based company will have sold nearly $745 million in the last year for three businesses that composed its industrial segment. Harsco announced the sale last year of its Patterson-Kelley and Air-X-Changers businesses.

“The sale of our IKG business is yet another noteworthy transaction for our business as we continue to transform into a single-thesis environmental solutions company,” said Nick Grasberger, Harsco chairman and CEO. “As with our other industrial business transactions, the sale of IKG will further enable Harsco to focus on high growth, less cyclical areas with a strengthened balance sheet and increased financial flexibility.”

Toronto-based RBC Capital Markets LLC is serving as financial advisor to Harsco, while Squire Patton Boggs of Cleveland is serving as its legal advisor in the deal.

KPS is a global private equity firm with more than $11.5 billion under management with investments in manufacturing and industrial companies.

Ryan Harrison, a partner of KPS Mid-Cap, said he was looking forward to working with IKG’s management team and employees during the transition.

“Given IKG’s demonstrated strengths, the addition of KPS’s strategic, operational and financial resources will create an ideal foundation for IKG’s future success as an independent company,” Harrison said. “We intend to drive the company’s growth both organically and through strategic acquisitions.”