KKR to buy Capital Safety for $1.12 billion

AP News
Posted: Nov 28, 2011 3:55 PM
KKR to buy Capital Safety for $1.12 billion

Investment firm Kohlberg Kravis Roberts & Co. LP said Monday that it agreed to buy Capital Safety for $1.12 billion. Capital Safety makes body harnesses, lifelines, hoists and other equipment to protect people from falls at industrial and residential sites.

KKR is acquiring the company from private equity firm Arle Capital Partners.

KKR said it sees attractive prospects in the fall protection business because of its ties to the energy and infrastructure industries, with potential for growth as more safety regulations are implemented worldwide.

On its website, Capital Safety lists 11 facilities in the U.S., Canada, Europe, Asia and Australia. Its products are used in the oil and gas, construction, transportation and utilities sectors.

The deal is expected to close in January, subject to regulatory approval.

New York-based KKR manages assets through a variety of investment funds. It had $58.7 billion in assets under management as of Sept. 30.

KKR shares rose 79 cents, or 7.1 percent, to $11.88 in afternoon trading amid a broad market rally.