Report: KKR Close to $1B Deal for Crosby Group

Private equity titan KKR (NYSE:KKR) is reportedly close to a $1 billion deal for Crosby Group, which makes products used in the energy and construction industries.

Reuters cited people familiar with the matter as saying KKR’s deal for the unit of British manufacturing investor Melrose Industries could be announced this week.

Melrose said in June it was looking to sell Tulsa, Oklahoma-based Crosby, which makes lifting fittings and blocks for the oil and gas, construction and mining sectors.

“As previously announced, the Crosby sale process is underway and we remain in discussion with a number of interested parties,” the U.K. firm said in a statement Monday.

KKR declined to comment.

According to Reuters, Crosby has attracted offers from other private equity firms, including Warburg Pincus and CCMP Capital, in addition to industrial products maker Columbus McKinnon (NASDAQ:CMCO).

Melrose itself is a private equity firm of sorts, specializing in turning around manufacturing and engineering companies.

In June, it sold its generators and electric motors unit Marelli Motors to Carlyle Group for $287 million. It recently purchased Elster Group, which makes gas, water and electricity meters.

Melrose acquired Crosby in 2008 when it secured a $1.6 billion takeover of U.K. engineering conglomerate FKI.

Crosby would be KKR’s second major industrial deal this year, after the New York-based firm bought Gardner Denver for $3.9 billion.

Shares of KKR were down 1.1% at $20.65 late Monday morning.