KKR Agrees to Exit Capital Safety in $2.5B Transaction
June 24, 2015
KKR has entered into a definitive agreement to sell portfolio company Capital Safety to 3M (NYSE: MMM) for a total enterprise value of $2.5 billion, including the assumption of approximately $700 million of debt, net of cash acquired. With roughly 1,500 employees, the company is a provider of fall protection equipment such as harnesses, lanyards, self-retracting lifelines and engineered systems. Capital Safety's sales, adjusted to include recent acquisitions on a full-year basis, were approximately $430 million for its fiscal year ended March 31. The effective enterprise value is approximately 14x annual adjusted EBITDA for the first 12 months following the completion of the transaction, which is expected in 3Q. KKR has backed the company since 2012.