L Squared Capital Partners (L Squared) announced the acquisition of Kano Laboratories (Kano). Kano is an 85-year-old leading provider of premium consumable chemical solutions used predominantly in industrial maintenance, repair, and operations (MRO) applications. This investment represents L Squared’s fourth platform investment in Fund IV, a $840 million private equity fund that closed in April 2023.

Kano products are utilized in the most demanding industries as a trusted solution to save users time and money. The company’s product portfolio is anchored by the Kroil brand of proprietary-formulated industrial penetrants, which boasts unparalleled customer loyalty among professionals in high-cost-of-failure environments. Coveted by professionals for 85 years, Kroil has recently expanded its market presence by introducing several product extensions and increasing its access points across all go-to-market channels, including industrial distribution, e-commerce, and retail.

In January 2024, Kano acquired Super Lube, a founder-owned portfolio of premium food grade synthetic industrial greases and lubricants used in various applications focused on ongoing asset reliability and machine upkeep. Super Lube is a proven premium product with best-in-class performance leading to entrenched relationships with customers in over 45 countries. Super Lube is highly complementary to Kroil’s focus on repair and critical maintenance of equipment and has benefited from Kano’s recently expanded sales infrastructure and network of distribution channel partnerships.

“We are excited to partner with the management team at Kano to help accelerate the Company’s growth, particularly through accretive acquisitions,” said Randall Hunt, Managing Partner at L Squared. “We see a fragmented landscape of niche specialty chemical products – such as Super Lube – that offer a great value proposition, but lack the sales resources to scale; Kano has built the go-to-market infrastructure to be the partner of choice for these businesses.”

Kano’s CEO, Mark Klein, added, “The partnership with L Squared marks an exciting new chapter for Kano. We’re grateful to find a partner with experience in supporting rapidly growing companies, including investing in the resources necessary to acquire niche, founder-owned industrial chemicals businesses when it is time for them to pursue a sale.”

L Squared’s Fund IV led the equity investment, along with co-investment from select L Squared limited partners, as well as participation from the Kano executive leadership team. NXT Capital led the debt financing to support the acquisition. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to L Squared, while BMO Capital Markets acted as advisor and Kirkland & Ellis LLP served as legal counsel to Kano.

The L Squared deal team consisted of Randall Hunt, Rob Healy, Brian Scott, and Matt Borges.