Firm Overview
Compass Group Invests in Critical Infrastructure Distributor
Compass Group Equity Partners, a St. Louis-based private equity firm, announced a new strategic investment in KGM, a Tulsa-based distributor and servicer of meters, regulators, valves, and other critical measuring and flow-control equipment to utilities and municipalities nationwide. Terms of the transaction were not disclosed.
With an increased emphasis on safety, proper measurement, flow control, and communication, utilities and municipalities choose KGM as a value-add partner due to their wide range of product offerings, technical expertise, and ability to customize products. “The products and services KGM provides are critical in nature and have a high cost of failure, thus customers rely heavily on the team at KGM for their extensive technical knowledge and expertise,” said Chris Gibson, Compass Group’s Managing Director. “We found a great partner in Tim Wood who has amassed a team with deep industry and product knowledge, which is invaluable when thinking of the customized solutions customers need within this segment of critical infrastructure.”
The KGM team is well-versed in M&A having completed four previous transactions. “We felt a mutual trust with the Compass Group team early in the process, and we’re excited to work together with them through this next growth phase,” said Tim Wood, KGM Founder.
The partnership between Tim Wood and Compass is expected to expedite the growth of KGM through a larger geographic footprint, the addition of new product sets, and the expansion of their services business with a focus on product refurbishment. KGM’s current customer and OEM base will be the benefactors of a partnership with a continued focus on customer service and enhancements to an expanded product and service offering.
About KGM
KGM is a value-add distributor and servicer of meters, regulators, valves, and other measuring devices primarily serving utility and municipality customers throughout the United States. KGM also provides servicing and technical refurbishment of meters and ancillary measuring equipment. Its products and services are critical to the country’s infrastructure, and KGM is a true value-add partner to both its OEMs and end customers.
