Precipart to Bolster Growth With Investment From KKR

KKR is investing in contract manufacturer Precipart but neither company disclosed the deal’s financial terms.
 
Founded in 1950 by the Laubscher family, Precipart manufactures highly engineered custom components, offering a comprehensive solution across design, engineering, manufacturing, and assembly for OEMs. In particular, the company considers itself a global leader in gears and motion control solutions across various end market segments, including surgical robotics. The Laubscher family remains highly committed to Precipart and is retaining a significant minority ownership stake in the company.
 
“My family and I are thrilled to form this strategic partnership with KKR. With KKR’s differentiated industry insights, global network, and deep bench of resources, we will be able to expand our capability offerings substantially, serve our customers better and at greater scale, and make Precipart an even better home for our employees,” Precipart CEO Oliver Laubscher said. “We look forward to working with the KKR team to build on what we have accomplished over the past 73 years.”

KKR is investing in Precipart through its Health Care Strategic Growth Fund II, a $4 billion fund focused on investing in high-growth health care-related companies. KKR has long supported healthcare companies globally, having committed more than $20 billion to the sector since 2004.
 
“We believe that Precipart has the foundational strength and customer orientation to become a global platform and are thrilled to collaborate with the company on its growth ambitions,” stated Ali Satvat, partner and Global Head of Health Care Strategic Growth at KKR. “This investment is a solid example of our Health Care Strategic Growth approach of backing leaders in thematic areas that we have followed over time and for which we believe that KKR can serve as a strategic partner in helping reach scale.”
 
“We have deep admiration and respect for the business that Oliver, his family, and the management team have built and are excited to be their chosen strategic partner to support the company going forward,” KKR Director Anuv Ratan added. “The medical device market is in need of sophisticated, scaled solution providers that can help customers navigate supply chain complexity, and we believe that Precipart is uniquely positioned to become a best-in-class partner to medical device OEMs.”
 
KKR is a global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. 
 
Founded in 1950 with roots in Swiss engineering and manufacturing, Precipart is a contract development and manufacturing organization of highly engineered precision components and assemblies, primarily for the medical device industry as well as the aerospace and industrial markets. Precipart is a comprehensive solution provider supporting its customers from the concept phase to serial production and in managing their growing supply chain complexity. Major product offerings include precision machining, micro mechanical components, assemblies, gear systems, motion solutions, technical ceramics, and advanced 3D printing.