Guardian Industries has reached an agreement in principle for KGIC LLC,a subsidiary of Koch Industries,to purchase a minority stake in Guardian,according to an Oct.3 letter from the Guardian board of directors to employees.As both are private companies,the terms of the transaction were not released.
"This announcement to employees came after a comprehensive and deliberate process by the company's Board of Directors to create a long-term ownership strategy that aligns the needs of all our stakeholders,"according to a same-day statement from Guardian officials.
The Guardian board has been seeking strategic partners for the company that"would be a cultural fit with Guardian and respect the Guardian Way,operate large industrial businesses,and would be willing to hold a minority stake with influence rather than outright control,"according to the letter to employees."Koch matches this profile extremely well."
Koch is an international company,with about 60,000 employees,and a presence in about 60 countries,according to the letter.The Guardian board stated in the letter that Koch's business outlook aligns with Guardian's."Like us,Koch takes a long-term,growth-oriented view toward business.We have strikingly similar views on business management and the importance of people in a company's success,"according to the letter."Koch also encourages entrepreneurship by employees."
Guardian officials expect the transaction to be completed by the end of the year,"pending satisfaction of various closing conditions,including regulatory approvals in a number of countries,"according to the letter.
