Live Ventures Announces Acquisition of The Kinetic Co., Inc.
June 30 2022 - 8:30AM
Live Ventures Incorporated (Nasdaq: LIVE), (“Live Ventures” or the
“Company”), a diversified holding company, today announced that
through its existing subsidiary, Precision Marshall, it has
acquired all of the outstanding stock of The Kinetic Co., Inc.
(“Kinetic”), a 74-year-old, Wisconsin-based company. The
transaction, valued at approximately $26 million, was financed with
a combination of third-party bank and seller debt, a sale-leaseback
of real estate, and cash from Live Ventures.
Kinetic is a highly recognizable and regarded brand name in the
production of industrial knives and hardened wear products for the
tissue, metals, and wood industries and is known as a one-stop shop
for in-house grinding, machining, and heat-treating. Kinetic was
founded by the Masters family in 1948 and is headquartered in
Greendale, Wisconsin. Kinetic manufactures more than 90 types of
knives and numerous associated parts with modifications and
customizations available to each. Kinetic employs approximately 100
non-union employees. The company’s website is
www.knifemaker.com.
“We are excited to add the Kinetic platform to our growing steel
manufacturing segment,” said Jon Isaac, President and CEO of Live
Ventures. “We believe Kinetic’s long-tenured family history and
culture, combined with its recognized brand name and manufacturing
footprint, are a great fit within the Live Ventures model. We look
forward to continuing the rich legacy of Kinetic and maintaining
its reputation, which comes from 70 plus years of commitment to its
customers, employees, and community. We welcome all of the Kinetic
employees to the Live Ventures family.”
“We are enthusiastic about this transaction and believe it will
be a positive move for our partners and customers and most
importantly, for our employees. By joining with Precision Marshall,
we expect to accelerate the growth of our business,” commented Cash
Masters, President of the Kinetic Co. “We look forward to joining
the Live Ventures and Precision Marshall team.”
The acquisition of Kinetic is expected to increase the Company’s
steel manufacturing segment’s annual revenues by approximately $20
Million. Kinetic will continue to operate as a standalone business
as it has been since 1948.
Taureau Group, LLC and Davis & Kuelthau, s.c. represented
The Kinetic Co., Inc. in the transaction.
About Live VenturesLive Ventures is a growing,
diversified holding company with a strategic focus on
value-oriented acquisitions of domestic middle-market companies.
Live Ventures’ acquisition strategy is sector agnostic and focuses
on well-run, closely held businesses with a demonstrated track
record of earnings growth and cash flow generation. The Company
looks for opportunities to partner with management teams of its
acquired businesses to build increased stockholder value through a
disciplined buy-build-hold long-term focused strategy. Live
Ventures was founded in 1968. In late 2011 Jon Isaac, CEO and
strategic investor took over the company and in 2015, refocused it
into a diversified holding company. The Company’s current portfolio
of diversified operating subsidiaries includes companies in the
textile, flooring, tools, steel, entertainment, and financial
services industries.
Forward-Looking and Cautionary Statements
The use of the word “company” or “Company” refers to Live
Ventures Incorporated and its wholly-owned subsidiaries. This press
release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. In
accordance with the safe harbor provisions of this Act, statements
contained herein that look forward in time that include everything
other than historical information, involve risks and uncertainties
that may affect the company’s actual results, including statements
relating to a potential roll-up strategy and increases in the
company’s consolidated revenues. These forward-looking statements
can be identified by terminology such as "will," "expects,"
"anticipates," "future," "intends," "plans," "believes,"
"estimates" and similar statements. Live Ventures may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the “SEC”)
on Forms 10-K and 10-Q, Current Reports on Form 8-K, in its annual
report to stockholders, in press releases and other written
materials, and in oral statements made by its officers, directors
or employees to third parties. There can be no assurance that such
statements will prove to be accurate and there are a number of
important factors that could cause actual results to differ
materially from those expressed in any forward-looking statements
made by the company, including, but not limited to, plans and
objectives of management for future operations or products, the
market acceptance or future success of our products, and our future
financial performance. The company cautions that these
forward-looking statements are further qualified by other factors
including, but not limited to, those set forth in the company’s
Annual Report on Form 10-K for the fiscal year ended September 30,
2021 (available at http://www.sec.gov). Live Ventures undertakes no
obligation to publicly update or revise any statements in this
release, whether as a result of new information, future events, or
otherwise.
Contact:Live Ventures IncorporatedGreg Powell,
Director of Investor
Relations725.500.5597gpowell@liveventures.comwww.liveventures.com
Source: Live Ventures Incorporated
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