The Stephens Group, LLC (“Stephens Group”) announced today that KPS Capital Partners, LP (“KPS”) has signed a definitive agreement to acquire its portfolio company Catalyst Acoustics Group (“Catalyst”). Catalyst is the parent company of an elite group of acoustic, seismic, vibration and noise control companies including Fräsch, IAC Acoustics, Kinetics Noise Control, Lamvin, Madrid, Noise Barriers, RealAcoustix, Sound Seal and independent testing laboratory Riverbank Acoustical Laboratories. The transaction is expected to be finalized in the fourth quarter of 2024 and is subject to customary closing conditions and approvals.
Catalyst Acoustics Group was formed in 2020 and has since enjoyed consistent year-over-year financial growth through an intentional balance of M&A activity and organic focus. A strong leadership team and deep bench of talent has driven Catalyst to a leadership position in the acoustic space. Speaking of the sale, Grant Jones, Managing Director of Stephens Group, called this a “natural evolution,” adding that, “[we] always believed that bringing the Catalyst family of companies together provided an outstanding and unique foundation for further expansion. We are grateful to Joe Lupone, Chief Executive Officer of Catalyst Acoustics Group, and the entire team for their partnership during the last five years. Together, we built a market leader, and Stephens Group is proud of the growth the company experienced under our watch. We are excited to pass the baton to KPS for the next chapter of success.”
Lupone commended both Stephens Group and KPS when speaking of his organization’s past and future. “Each of our brands comes to the table with well-seasoned, robust channel partners and strong value propositions. Stephens Group always understood how critical brand and channel preservation is to our organization, and I am pleased to report that KPS shares this outlook. We look forward to a bright future as part of the KPS family and to providing expanded opportunities to our loyal customers.”
With a closing expected in the fourth quarter of 2024, Catalyst Acoustics Group, its employees, customers, and constituents have a high level of excitement and a very positive outlook for the new year. Additional information on the acquisition will be provided post-close.
Baird and Bryan Cave Leighton Paisner LLP served as financial advisor and legal counsel, respectively, to Catalyst. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS.
For more information about Catalyst Acoustics Group or its group of companies, visit catalystacoustics.com.
ABOUT CATALYST ACOUSTICS GROUP
Catalyst Acoustics Group is the parent company of an elite group of acoustic, seismic, vibration and noise control companies that together, offer the broadest portfolio of noise control solutions in the market today. The independent brands, channels to market, products and services offered by each business remain unique, while leveraging the deep functional expertise, broad channel reach, significant financial resources, and much larger scale of the combined Catalyst Acoustics Group.
ABOUT THE STEPHENS GROUP, LLC
The Stephens Group, LLC is a private investment firm that partners with talented management teams to help build valuable businesses. Backed by the resources of the Witt Stephens, Jr. and Elizabeth Campbell families, the firm combines the operational expertise of a private equity firm with the flexibility provided by long-term capital. With over $2 billion of private equity assets under management, the firm has a long history of providing informed, sophisticated expertise and working with owners and managers to help them successfully achieve their strategic visions and build long-term value. Since 2006, Stephens Group has invested in over 50 companies, targeting investments in industries across the U.S., including industrial products and services, specialty distribution, and vertical software.
ABOUT KPS CAPITAL PARTNERS, LP
KPS, through its affiliated management entities, is the manager of the KPS Special Situations Funds, a family of investment funds with $21.8 billion of assets under management (as of June 30, 2024). For nearly three decades, the Partners of KPS have worked exclusively to realize significant capital appreciation by making controlling equity investments in manufacturing and industrial companies across a diverse array of industries, including basic materials, branded consumer, healthcare and luxury products, automotive parts, capital equipment and general manufacturing. KPS creates value for its investors by working constructively with talented management teams to make businesses better, and generates investment returns by structurally improving the strategic position, competitiveness and profitability of its portfolio companies, rather than primarily relying on financial leverage. The KPS Funds’ portfolio companies have aggregate annual revenues of approximately $19.3 billion, operate 219 manufacturing facilities in 26 countries, and have approximately 47,000 employees, directly and through joint ventures worldwide (as of June 30, 2024). The KPS investment strategy and portfolio companies are described in detail at www.kpsfund.com.
KPS Mid-Cap focuses on investments in the lower end of the middle market that require up to $200 million of initial equity capital. KPS Mid-Cap targets the same type of investment opportunities and utilizes the same investment strategy that KPS’ flagship funds have for nearly three decades. KPS Mid-Cap leverages and benefits from KPS’ global platform, reputation, track record, infrastructure, best practices, knowledge, and experience. The KPS Mid-Cap investment team is managed by Partners Pierre de Villeméjane and Ryan Harrison, who lead a team of experienced and talented professionals.
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Contacts
Allie Laborde
The Stephens Group, LLC
alaborde@stephensgroup.com
