Key Takeaways
- • KKR acquired Flow Control Group from Bertram Capital in February 2021, a leading North American distributor of mission-critical flow control, fluid handling, and industrial automation products headquartered in Charlotte, North Carolina.
- • Approximately 1,500 employees across the U.S. and Canada received equity stakes in the business through KKR's broad-based employee ownership program, aligning workforce incentives with company performance and long-term value creation.
- • Flow Control Group operates a substantial customer and supplier network, serving over 10,000 customers and 2,000 suppliers with product categories including air equipment, pumps, valves, process control, and industrial automation solutions.
- • KKR executed the acquisition through its Americas XII Fund; financial terms were not disclosed. R.W. Baird, Hirschler, Kirkland & Ellis, and Deloitte served as transaction advisers.
- • The acquisition reflects KKR's industrials investment strategy focused on employee engagement as a value driver, with equity participation and workforce development positioned as key mechanisms for building stronger businesses.
Summary
KKR & Co. Inc. announced in February 2021 that it had agreed to acquire Flow Control Group, a Charlotte, North Carolina-based distributor of flow control and industrial automation products, from existing owner Bertram Capital Management. The transaction was executed through KKR's Americas XII Fund, though financial terms were not publicly disclosed. Flow Control Group operates as a leading North American distributor serving over 10,000 customers and 2,000 suppliers across technical flow control and industrial automation verticals, with product offerings spanning air equipment, pumps, valves, process control systems, and related industrial automation services.
A cornerstone feature of the KKR acquisition was the implementation of a broad-based employee ownership program extending equity participation to approximately 1,500 employees across the United States and Canada. The equity grant structure positioned employees to participate directly in business returns alongside KKR's capital, creating alignment between workforce and investor interests. Josh Weisenbeck, a KKR partner leading the firm's industrials investment team, highlighted Flow Control Group's competitive positioning as "a strategic partner and consultative, technical resource for customers' critical flow control and industrial automation product needs," signaling confidence in the company's market position and growth trajectory.
KKR's employee ownership approach at Flow Control Group reflects the firm's broader industrials strategy implemented since 2011, emphasizing employee engagement as a material driver of enterprise value creation. Beyond equity participation, KKR's support included investments in cross-functional workforce training and community engagement initiatives. David Patterson, CEO of Flow Control Group, expressed support for the partnership, stating the company would leverage KKR backing to "further expand our reach across the flow control and industrial automation sectors while investing to better serve our customers and supplier partners." Transaction advisers included R.W. Baird and Hirschler for Bertram Capital, and Kirkland & Ellis and Deloitte for KKR.
A cornerstone feature of the KKR acquisition was the implementation of a broad-based employee ownership program extending equity participation to approximately 1,500 employees across the United States and Canada. The equity grant structure positioned employees to participate directly in business returns alongside KKR's capital, creating alignment between workforce and investor interests. Josh Weisenbeck, a KKR partner leading the firm's industrials investment team, highlighted Flow Control Group's competitive positioning as "a strategic partner and consultative, technical resource for customers' critical flow control and industrial automation product needs," signaling confidence in the company's market position and growth trajectory.
KKR's employee ownership approach at Flow Control Group reflects the firm's broader industrials strategy implemented since 2011, emphasizing employee engagement as a material driver of enterprise value creation. Beyond equity participation, KKR's support included investments in cross-functional workforce training and community engagement initiatives. David Patterson, CEO of Flow Control Group, expressed support for the partnership, stating the company would leverage KKR backing to "further expand our reach across the flow control and industrial automation sectors while investing to better serve our customers and supplier partners." Transaction advisers included R.W. Baird and Hirschler for Bertram Capital, and Kirkland & Ellis and Deloitte for KKR.
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