Private equity firm Pacific Avenue Capital Partners has acquired fire suppression company KiddeFenwal.
Pacific Avenue – a middle market-focused private equity firm specializing in carve-outs and complex situations – this week said it had closed on its acquisition of KiddeFenwal, a designer and manufacturer of industrial and commercial fire suppression systems and safety controls.
Terms of the deal were not disclosed.
The investment firm said the deal positions KiddeFenwal for “substantial growth” in the US and globally.
Founded in 1917, the company serves industries including power generation & transmission, data centers, commercial food service, marine, industrial, and HVAC. It sells fire, smoke, and chemical detection systems and components; fire suppression systems; and fire extinguishers through its Kidde Fire Systems, Kidde Fire Protection, and Fenwal Controls units.
The company filed for bankruptcy last year amid lawsuits relating to water contamination.
“With its enviable product portfolio, established brand equity, and strong customer relationships, KiddeFenwal has long been a dominant, global leader in the fire safety systems and controls category. Now it is poised to truly accelerate growth,” said James Oh, partner of Pacific Avenue Capital Partners. “Our team looks forward to helping the company fully leverage its strong fundamentals and prevailing market tailwinds, drive innovation, and make investments in operations that support our extraordinary teams and enhance our value to customers who place a tremendous amount of trust in us given the critical nature of our products.”
Chris Sznewajs, founder and managing partner of Pacific Avenue Capital Partners, added: “I am excited to welcome the KiddeFenwal brand and team, and look forward to all that lies ahead for the business. This company is exceptionally well-positioned to build on its industry-leading brand and market position.”
Pacific Avenue received approval on its purchase of substantially all the assets of Kidde-Fenwal, Inc. by the United States Bankruptcy Court for the District of Delaware on April 2, 2024, acquiring the company from HVAC firm Carrier Global Corporation. Acquired by United Technologies in 2005, Carrier inherited KiddeFenwal as part of a new spin-out amid United’s merger with Raytheon in 2020.
The company filed for bankruptcy in May 2023 amid a number of lawsuits over PFAS “forever chemicals” in its firefighting foam-contaminated water sources around US airports and military bases.
Since 2016, KiddeFenwal has been named as a defendant in more than 4,400 lawsuits claiming aqueous film-forming foam (AFFF) products contaminated drinking water and soil with perfluoroalkyl and polyfluoroalkyl substances. KiddeFenwal sold AFFF products under the National Foam brand from 2007 to 2013, before selling the unit.
In light of the lawsuits, Carrier said KiddeFenwal was “not a strategic fit” for the group. Carrier said it was not responsible for the AFFF activities of the KiddeFenwal and would not support the unit financially, leading to the bankruptcy file.
At the time, Carrier said all net proceeds from the sale would be made available to pay AFFF liabilities and other claims. Creditors and litigators said the bankruptcy should not be used to resolve lawsuits against Carrier and Raytheon.
Pacific Avenue was advised by Stifel, Nicolaus & Company, Incorporated as financial advisor and Raines Feldman Littrell LLP as legal advisor.
