KKR marks historic 10x returns with $3bn CHI exit deal


KKR has made its largest return in recent history agreeing to exit CHI Overhead Doors to Nucor Corporation at 10x returns in a $3bn valuation deal.

The garage door maker saw a four fold increase in EBITDA since 2015. Its EBITDA has steadily improved over a seven-year period from 21% to over 30%. Revenue of the company grew by nearly 120% enabled by the investments in manufacturing facilities.

All CHI employees will be made owners in the business upon KKR’s acquisition and hourly employees as well as truck drivers will receive approximately $175,000 in payout on their equity on average.

Pete Stavros, Co-Head of Americas Private Equity at KKR and Founder of the nonprofit Ownership Works, “CHI is a powerful testament that creating a culture of ownership works. We have seen first-hand the impact that the ownership mindset can have on individual owners and the business.

“When you invest in employees, positive results will follow. Thank you to every single person on the CHI team and everyone who has been part of our journey. Together, we have exceeded our goals, delivered for CHI customers and supported each other and our community. We are incredibly proud of our work together and the end result for all CHI shareholders, including KKR’s limited partners in North America Fund XI.”

KKR and CHI were advised by Goldman Sachs as lead financial and M&A advisor, UBS as M&A co-advisor, and Kirkland and Ellis as legal advisor on the transaction.

KKR raised a record-breaking $19bn for its latest North America Fund last month which it said was to take advantage of a macroeconomic environment “tailor-made for private equity”.

North America Fund XIII is almost 50% larger than the predecessor vehicle the firm closed in 2017, and more than double the size of North America Fund XI from 2014.

The firm said KKR North America Fund XI and KKR Americas XII Fund, KKR has delivered an average gross IRR of 30.1% and a gross multiple on invested capital of 2.6x.

KKR Americas XII Fund, which began investing in 2017, is now fully deployed, and has generated a gross IRR of 50.1% at the start of this year.

Copyright © 2022 AltAssets

Get the latest PE News & Research delivered to your inbox every morning