"Our aim is to be the number 1 in North America," said Hartmut Jenner, Karcher's managing director, on the acquisition. "I am sure that together we will strengthen our market position in the U.S. and secure sustainable growth. We believe there are exceptional opportunities to enhance product offerings in both directions between the organizations."
Dennis Meagher, Castle Rock's CEO, said, "We are excited about the combination of strengths and culture in the joining of these companies. The result will be extremely positive for our current and future customers, then employees of the companies, and the industries we serve."
Peter Hermann, general partner of Boston-based private equity firm Heritage Partners said, "We are very pleased at the outcome of the investment for our investors, Castle Rock's management and employees, and the Francis family, who founded the original company." Castle Rock is a portfolio company of Heritage Partners.
With the acquisition, Castle Rock expands Karcher's presence in North America through Windsor's commercial floor care equipment, as well as raises visibility in the professional carpet cleaning segment with the Prochem and Century 400 lines, adds to the national service footprint with TecServ, and offers an increased parts business with the Graco line.
For Castle Rock, Karcher brings the resources of a large, multinational company with world-class capabilities. Karcher also enhances the combined companies' exposure to the international marketplace.
Harris Williams & Co. served as Castle Rock's financial advisor in the transaction. Choate, Hall & Stewart LLP acted as counsel to Castle Rock and Heritage Partners. Duane Morris LLP was U.S. legal counsel to Karcher and Karcher engaged Ernst & Young to undertake the due diligence study.