Kinperium Industries announced it has acquired K.A. Group, consisting of K-Tec Earthmovers and Ashland Industries. Kinperium partnered with the owners and management of K-Tec and Ashland to acquire a majority stake of the company.
K-Tec and Ashland are leading manufacturers of pull-pan earthmoving scrapers and implements for the construction, mining and agriculture markets. The two scraper brands previously joined forces in a 2020 merger, providing for production facilities in Rosenort, Manitoba, Canada, and Ashland, Wisconsin, USA. They have benefitted from a global network of equipment dealer relationships and have grown consistently by developing and manufacturing a variety of products.
“Our new partnership with K-Tec and Ashland is truly groundbreaking,” said Bill Kostenko, chairman of Kinperium Industries Inc. “Ashland has a deep heritage of success in the agricultural and industrial construction markets, while K-Tec’s quality, rugged earthmoving equipment excels in the heavy construction and mining markets. We believe that these complementary brands are well positioned to expand their industry leading market share, and Kinperium looks forward to supporting the long-term growth of the organization."
With the aggressive growth goals the company has set out, both factories and all current employees are geared up to continue their strong efforts under new ownership. The factories on both sides of the border are each looking to add additional staff to their teams, and future facility expansion projects to fulfill the existing order book of earthmoving equipment.
"One of the major factors that attracted us to the K.A. Group is the strength and enthusiasm of management team," said Kostenko. "We look forward to supporting this existing team to continue the momentum that they have created for the K.A. Group.”
“Kinperium is a family office which focuses on the generational, stable success of businesses.” said Mike Palitsky, President/CEO of K.A. Group. “I firmly believe that this structure is exactly in line with the culture that we are enjoying at K.A. Group today. From the start, we identified Kinperium as our No. 1 partner candidate. We are thankful that we can now begin our working relationship together for a promising future of long-term growth.
“K.A. Group also sincerely thanks our previous owner group, Owner Resource Group (“ORG”) for their foundational support, connections, and structure that they established for our company to flourish over the last three years," he added.
Kinperium closed the transaction on January 31, 2022. Financial terms of the deal were not disclosed.
