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KKR to invest in Precipart to accelerate growth
Tuesday, 24 October 2023

KKR, a leading global investment firm, announced today that it has agreed to invest in Precipart (the “Company”), a leading contract manufacturer of precision components for the medical device and aerospace industries. KKR plans to support the Company in its continued growth organically and through M&A. Financial terms were not disclosed.

Founded in 1950 by the Laubscher family, Precipart manufactures highly engineered custom components, offering a comprehensive solution across design, engineering, manufacturing, and assembly for leading Original Equipment Manufacturers (“OEM”). In particular, the Company is a global leader in gears and motion control solutions across a range of end market segments, including surgical robotics. The Laubscher family remains highly committed to Precipart and is retaining a significant minority ownership stake in the Company.

Oliver Laubscher, CEO of Precipart, commented: “My family and I are thrilled to form this strategic partnership with KKR. With KKR's differentiated industry insights, global network, and deep bench of resources, we will be able to expand our capability offerings substantially, serve our customers better and at greater scale, and make Precipart an even better home for our talented employees. We look forward to working with the KKR team to build on what we have accomplished over the past 73 years.”

Ali Satvat, Partner and Global Head of Health Care Strategic Growth at KKR, said: “We believe that Precipart has the foundational strength and customer orientation to become a global platform and are thrilled to collaborate with the Company on its growth ambitions. This investment is a solid example of our Health Care Strategic Growth approach of backing leaders in thematic areas that we have followed over time and for which we believe that KKR can serve as a strategic partner in helping reach scale.”

Anuv Ratan, Director at KKR, added: “We have deep admiration and respect for the business that Oliver, his family, and the management team have built and are excited to be their chosen strategic partner to support the Company going forward. The medical device market is in need of sophisticated, scaled solution providers that can help customers navigate supply chain complexity, and we believe that Precipart is uniquely positioned to become a best-in-class partner to medical device OEMs.”

KKR is investing in Precipart through its Health Care Strategic Growth Fund II, a $4.0 billion fund focused on investing in high-growth health care-related companies. KKR has a long track record of supporting health care companies globally, having committed over $20 billion to the sector since 2004.

Completion of the transaction is subject to customary closing conditions.

Contact details from our directory:
Precipart Corporation Turning, Inclinometers, Pulleys, Shafts & Shaft Assemblies, Cockpit Control Systems, Angle Drives, Gears & Assemblies, Landing Gear Controls, Engineering Design Services, Pressure Indicators, Mechanical Actuators, Constant Speed Drives, Gear Drives, Torque Tube Drives, Variable Speed Drives, Mechanical Transmissions