Kronos Lays Foundation for Next Phase of Growth; Adds World-Class Investors at $4.5 Billion Enterprise Valuation

CHELMSFORD, Mass., Feb. 20, 2014 – Kronos Incorporated¹ today announced that it has entered into a definitive agreement to effect a recapitalization of the company through a $750 million equity investment by funds managed by Blackstone (NYSE:BX) and GIC. Blackstone and GIC will invest in Kronos alongside the original investors Hellman & Friedman and JMI Equity. Hellman & Friedman will remain the majority investor in the company.

News Facts

• The addition of Blackstone and GIC as investors in Kronos brings further global expertise, resources, and insight to the company.
• The new investment by Blackstone and GIC will enable Kronos to accelerate the pace of innovation that has fueled its growth in recent years. It will also enable the Kronos management team to continue to take a long-term view of how best to deliver superior products and services to its customers.
• Aron Ain, chief executive officer of Kronos, will continue to lead the organization.
• Kronos, previously publicly traded on NASDAQ, was taken private by Hellman & Friedman and JMI Equity in 2007, in a transaction valued at approximately $1.8 billion. Since that time, Kronos revenues have increased 45 percent and earnings before interest, tax, depreciation, and amortization (EBITDA) increased 114 percent. Kronos is fast approaching $1 billion in annual revenue.
• The transaction is subject to customary closing conditions, including receipt of regulatory approvals, and is expected to close in the first half of 2014.
• Simpson Thacher & Bartlett LLP served as legal counsel for Kronos and Hellman & Friedman. Morgan Stanley and Jefferies served as financial advisors to Kronos. Kirkland & Ellis LLP and Blackstone Advisory Partners served as advisors to Blackstone.

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