Why This Matters to Distributors: The deal shows private equity’s continued focus on technical distribution platforms that combine products, engineering, and service. It also underscores how scale, specialization and digital investment are driving valuations and consolidation across the sector.
Flow Control Group will add Neuberger Private Markets as a significant minority investor while KKR maintains majority ownership.
KKR and Neuberger agreed to jointly acquire the Charlotte, North Carolina-based distributor of flow control, automation and engineered industrial solutions. Financial terms were not disclosed. The transaction is expected to close in the second quarter, subject to regulatory approvals.
Flow Control Group has expanded rapidly since KKR acquired the company in 2021. Revenue and EBITDA have more than tripled over that period, driven by a strategy that combines acquisitions with organic growth, cross-selling and expanded technical services.
“Flow Control Group exemplifies KKR’s approach of taking great businesses to the next level through a combination of strategic acquisitions and operational value creation,” said Josh Weisenbeck, a partner at KKR who leads the firm’s industrials team in North American private equity.
The company operates a network of more than 120 specialized distribution and service providers across the United States and Canada, serving markets including water and wastewater, life sciences, aerospace and defense, food and beverage, and power generation. It also targets higher-growth segments such as data centers and advanced automation.
Flow Control Group employs more than 3,000 people, including over 1,000 technical sales specialists and 600 service technicians, and works with more than 3,000 suppliers.
David Stonberg, deputy head of Neuberger Private Markets, said the firm views Flow Control Group as a “best-in-class distributor and key technical provider” with a robust growth history.
The investment also includes a payout tied to the company’s employee ownership program. KKR introduced that program after its 2021 acquisition, making all employees owners. As part of the new deal, the company’s more than 3,000 employees are expected to receive cash payments if the transaction closes. KKR and Neuberger said they plan to re-establish a broad-based ownership program after closing.
“One of the most impactful parts of working with KKR was their focus on employee ownership and engagement,” said Raymond Aronoff, CEO and president of Flow Control Group.
Aronoff said the model helped align employees around a strategy focused on value-added distribution, technical services, and long-term growth.
The transaction highlights continued investor interest in distributors that offer more than product fulfillment, particularly those with engineering expertise, automation capabilities, and service operations.
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