A pair of Chattanooga area plants are each expected to gain as they come under the wing of one company that's now the biggest independent domestic supplier of products in its field.
Paladin Attachments, a Michigan-based company with an Ooltewah factory that makes couplers and attachments for construction and land-clearing equipment, has purchased Kodiak Manufacturing in Bradley County, Tenn.
* Headquarters: Dexter, Mich.
* Products: Couplers and attachments for the construction, aggregate, agriculture, land-clearing and mining markets
* Plants: Ooltewah, Tenn., and facilities in Ohio, Iowa, North Carolina, Brazil
* Website: www.paladinattachments.com
* Headquarters: Charleston, Tenn.
* Founded: 1996
* Products: Agriculture implements such as rotary cutters, soil and gravel movers, tillers
* Website: www.kodiakmfg.com
Kodiak, based in Charleston, is a maker of agricultural implements, including rotary cutters, soil and gravel movers, and tillers.
Joe Shoemaker, Paladin's marketing director, said that business now is the No. 1 independent domestic supplier of attachment products with the deal. The move supports Paladin's product diversification objectives by improving its presence in the agricultural sector.
"We see continued accelerated growth across the Paladin brand," Shoemaker said on Monday.
The two Chattanooga area facilities combined employ several hundred workers, he said.
The purchase price of Kodiak wasn't disclosed, but the Paladin officials said the transaction provides that business with a platform for continued growth through increased capacity and market support.
"It's natural to assume more growth going forward," Shoemaker said. "It's going to be business as usual."
The worker head count is to stay the same at both facilities, though Paladin is looking at increasing business at both sites, he said.
Shoemaker wouldn't disclose company revenues, but each business is on a growth curve and higher sales are expected.
Mike Flannery, a Paladin vice president, said the Kodiak acquisition fulfills critical growth strategies.
"We highly respect the Kodiak brand, as well as the people and products that define this unique brand proposition," he said.
Paladin is owned by International Equipment Solutions, which employs more than 2,700 people in North America, South America and Europe. It has seven operating units in engineered attachment tools for operator-driven equipment.
IES was formed in 2011 by New York-based KPS Capital Partners, which manages investment funds valued at $5.7 billion in assets.
In late 2014, KPS sold Waupaca Foundry, which has an operation in McMinn County, Tenn., for $1.3 billion in cash to Hitachi Metals. Waupaca employs more than 500 people in Etowah.
Contact Mike Pare at firstname.lastname@example.org or 423-757-6318.