KCM Capital Partners (US), a private equity firm focused on lower middle-market business services and specialty industrial companies, has completed the acquisition of Carolina Filters (US) in a majority buyout. The deal was announced on June 20, 2025.
| Acquirer | Target | Deal Value | Type | Close Date | Advisors |
|---|---|---|---|---|---|
| KCM Capital Partners (US) | Carolina Filters (US) | Undisclosed | Majority buyout | 2025-06-20 | Buy-side: CMC Capital; Legal: Katten Muchin Rosenman LLP |
The acquisition aims to support Carolina Filters' growth and expansion of its mission-critical filtration products and services. Byline Bank provided senior debt financing for the transaction.
Deal Mechanics
KCM Capital Partners, a Chicago-based private investment firm, acquired a controlling stake in Carolina Filters through a buyout deal. The financial terms of the transaction were not disclosed, but it is known that Byline Bank provided senior debt financing to support the acquisition.
Strategic Rationale
Derek Ferguson, Partner at KCM Capital Partners, emphasized the company's commitment to Carolina Filters' mission-critical filtration solutions and services. The deal will enable the company to expand its geographic reach, invest in infrastructure and people, as well as execute on add-on acquisitions.
Financial Context
Carolina Filters, headquartered in Sumter, SC, was founded in 1968 and has since become a provider of mission-critical filtration products and services to industrial and commercial customers across the U.S. The company's three business divisions include Carolina PEC, Carolina IAQ, and Carolina Filter Supply.
Advisors
The buy-side financial advisor for KCM Capital Partners was CMC Capital, while Katten Muchin Rosenman LLP served as legal counsel to the acquirer. The sell-side advisors were not disclosed.
Outlook
KCM plans to work closely with Carolina Filters’ management team to support the company's continued growth and success. The acquisition will provide Carolina Filters with access to additional capital and resources to invest in areas such as technology, employees, new products and service offerings, acquisitions, and strategic geographic expansion.