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Kalmar, part of Cargotec, has signed an agreement to sell its rough terrain handling business, Kalmar Rough Terrain Center, to management and a Texas-based investment group, led by Independent Bankers Capital Funds (IBCF) and Congruent Investment Partners, LLC (Congruent). The Letter of Intent was executed in February 2018, the formal stock purchase agreement was signed today 02, July, 2018 and the transaction is expected to be completed on or around 02 July 2018.
Kalmar Rough Terrain Center (KRTC) is a specialized manufacturer of rough terrain material handling equipment for both the defense and commercial markets. It is also a manufacturer and distributor of parts and a service provider to existing equipment. Its portfolio includes the RT240 Rough Terrain Container Handler and the RT022 Light Capability Rough Terrain Forklift that are specially built to military standards, with a proven ability to provide exceptional container handling in the toughest environments, as well as the RT290 Rough Terrain Container Handler for commercial operations. KRTC is headquartered in Cibolo, Texas, US, and its facility includes four buildings on 13.3 acres.
“This transaction follows Kalmar’s strategy to focus on container ports, heavy industry and distribution segments. The rough terrain handling business is outside these core areas. Furthermore, KRTC operates to a large extent as a stand-alone business with limited synergies with the rest of Kalmar,” comments Antti Kaunonen, President of Kalmar.
“After a strong period of ownership by Kalmar, we are thrilled to begin our next chapter as an independently owned and operated small business, based in Cibolo, Texas,” comments Stephen Speakes, President and CEO, Kalmar RT Center. “Management’s partnership with IBCF and Congruent positions the company very well to excel in the future. The combination of our operating strengths in rough terrain with their broad industry expertise and strong financial backing will allow the company to maintain a robust core base while aggressively pursuing growth opportunities. We think this is not only a win for the employees, customers and vendors of the company, but also the broader San Antonio and Central Texas markets. We’d like to thank Kalmar for their support through this process and their stewardship as owners.”
“We, as a Texas based Small Business Investment Company, consider it an honor to partner with the very talented management team and employees of KRTC as they embark on their next phase of growth as a Texas-owned small business” comments Barry Conrad, Managing Partner of IBCF.
“We’re excited to partner with IBCF and management in acquiring KRTC. We believe the platform is built to thrive, on both the military and commercial sides, under Steve’s leadership and as a standalone, domestically-owned small business,” comments Travis Baldwin, Managing Member of Congruent. “This continues Congruent’s strategy of aligning with best-in-class management teams to build and grow businesses in the lower middle market.”
The Company will seamlessly transition to a new name and brand following the sale. We will become the Independent Rough Terrain Center (IRTC) located at Cibolo, Texas. Each aspect of this new identity has meaning. The Company will be “Independent”, operating as a free standing US-owned small business. Our competency will be as the Rough Terrain Center recognizing our products’ unique niche, and our special competency as the global leader in material handling rough terrain solutions. Our employees are extremely proud of our Texas roots and our special affiliation with our home town of Cibolo. We asked for and received the City of Cibolo’s permission to integrate the Cibolo Buffalo into our Brand.
“The City of Cibolo is happy for Kalmar and its employees. Kalmar has been a proud partner for our community, and we are glad that the relationship will continue for years to come. It is exciting to hear that they will be their own company, and they will grow with our City. Independent Rough Terrain Center has chosen to stay in Cibolo, and further the “City of Choice” as a top pick for industrial businesses to grow and thrive.”-Robert T. Herrera, Cibolo City Manager