K-Tec Acquires Ashland Industries
ORG K-Tec Holdings LLC (“K-Tec”) announced it has acquired Ashland Industries Holdings Inc. (“Ashland”). The merger represents two highly regarded specialty manufacturing companies within the earthmoving industry. The newly merged organizations will be headquartered in Rosenort, MB, Canada and led by Mikhail (Mike) Palitsky, President of K-Tec. The combined business will have manufacturing and service locations in both Rosenort, MB, Canada and Ashland, WI, USA.
K-Tec is majority owned by an affiliate of private investment firm Owner Resource Group LLC (“ORG”). Austin, Texas-based ORG originally partnered with the owners and management of K-Tec to acquire a majority stake of the company in 2018 and assisted with the acquisition of Ashland.
K-Tec and Ashland are leading manufacturers of earthmoving scrapers and accessory products serving the construction, mining, and agriculture markets. The merger will allow them to offer the broadest product line of earthmoving scrapers in the industry across a large geographic footprint of dealers while providing exceptional service coverage. The combination will provide shorter lead times for customers and accelerate product design and introduction. There will be no management changes at either company as a result of the merger.
ORG Managing Director, Jonathan Gormin, said, “We are excited about our partnership with K-Tec and Ashland and believe in the long-term growth potential of the companies. We believe this transaction supports the vision of both management teams to be a global leader in the earthmoving industry. The combination will allow the business to expand its product offerings, enhance innovation and provide outstanding support to our dealers. We look forward to supporting the management team’s efforts to realize the full potential of the combined organization.”
ORG led the transaction which received additional financing support from Cadence Bank NA.
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