Family-controlled investment firm Nordstjernan inked a definitive agreement to sell its Kansas-based industrial company KMT Group to American Industrial Partners (AIP). KMT designs, manufactures and supplies ultra-high pressure pumps. These pumps are used for industrial manufacturing, surface preparation and food processing purposes.

Under the terms of the agreement, AIP would be buying KMT for USD 147.5 million. The purchase price would represent KMT's adjusted earnings over six times before interest, taxes, depreciation and amortization last year.

Sweden-based Nordstjernan first invested in KMT in 1999, but took it private in 2007. Chief Executive Officer Tomas Billing lauded how the company has grown through the years. "Since 2003, the UHP pump business has grown on average by 8% organically per year. It has been a great journey and we would like to thank the management team and KMT employees for their contributions and dedicated work. We wish KMT and AIP the best of luck for the future," he added.