Kohler has sold a majority stake in its energy unit to investment firm Platinum Equity.
Kohler Co. and Platinum Equity announced this week that the companies have closed the transaction to establish Kohler Energy as a separate, independent business. Financial details were not disclosed.
Platinum Equity is now the majority owner of the Energy business; Kohler Co. remains an investment partner.
"This strategic move allows Kohler to focus and invest in our global Kitchen & Bath, Wellness, and Hospitality businesses while also positioning the Energy business to reach its full potential under the ownership of Platinum Equity," said David Kohler, chair and CEO of Kohler Co.
"I want to thank the entire Energy team; the performance of this business over the last three years has been remarkable. Exciting times are ahead, and Energy will forever have a special place in our company's heritage."
Brian Melka has been appointed CEO of the new Energy business. He was previously group president for energy within Kohler, having been with the company since 2013.
Melka said: "We are excited for this next phase of Kohler Energy with Platinum Equity as a partner. The demand for resilient energy is growing, and the world needs much more of what we do. Kohler has been an excellent steward of our business for more than 100 years, and this decision positions Kohler Energy to better deliver on that demand."
The two companies first announced plans to carve out Kohler’s energy business in November 2023. Businesses within the separated portfolio include Power Systems, Engines, Home Energy, Kohler Uninterruptible Power, Clarke Energy, Curtis Instruments, and Heila Technologies.
Offerings in the portfolio include power plant solutions, UPS systems, backup generators, microgrids, solar systems, and powertrains.
Founded in 1995, Platinum Equity is a global investment firm with more than $48 billion of assets under management.
"Platinum is committed to strengthening Kohler Energy's position as an industry leader and investing in development of a new generation of innovative energy resilience solutions," said Platinum Equity co-president Jacob Kotzubei.
"We are excited about the prospects for the business, which has been at the forefront of energy resilience for more than a century. We have tremendous respect for David Kohler and the Kohler leadership team, appreciate their confidence in us, and are grateful for their continued partnership."
