Kinperium Industries announced the acquisition of KA Group, consisting of K-Tec Earthmovers and Ashland Industries. Kinperium has partnered with the owners and management of K-Tec and Ashland to acquire a majority stake in the company.
K-Tec and Ashland are the leading manufacturers of trailed deck scrapers and earthmoving tools for the construction, mining and agricultural 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 benefited from a worldwide network of equipment dealer relationships and have experienced steady growth by developing and manufacturing a variety of products.
“Our new partnership with K-Tec and Ashland is truly revolutionary,” said Bill Kostenko, President of Kinperium Industries Inc. “Ashland has a long heritage of success in the agricultural and industrial construction markets, while K-Tec’s rugged, quality earthmoving excels in the heavy construction and mining markets. We believe these complementary brands are well positioned to expand their industry-leading market share, and Kinperium is pleased to support the long-term growth of the organization.
With the aggressive growth targets the company has set, both plants and all current employees are ready to continue their sustained efforts under new ownership. Plants on both sides of the border are each looking to add additional staff to their teams and future facility expansion plans to fill the existing order book for earthmoving equipment.
“One of the main factors that attracted us to the KA Group was the strength and enthusiasm of the management team,” Kostenko said. “We look forward to supporting this existing team to continue the momentum it has created for the KA Group.”
“Kinperium is a family office focused on generational and stable business success.” said Mike Palitsky, Chairman and CEO of KA Group. “I strongly believe that this structure is exactly in line with the culture we enjoy today at KA Group. From the outset, we identified Kinperium as our #1 candidate partner. working together for a promising future of long-term growth.
“KA Group also sincerely thanks our former Owners Group, Owner Resource Group (“ORG”) for their fundamental support, relationships and the structure they have established for our business to thrive over the past three years.” he added.
Kinperium closed the transaction on January 31, 2022. Financial terms of the agreement were not disclosed.