Koch Industries Inc

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Koch Industries is an American conglomerate, operating in 60+ countries. Based in Kansas, Koch is the USA's 2nd largest privately-owned company,[1]

Koch Industries is involved in a variety of industries. Its significant divisions are:

  • Flint Hills Resources LP:
    Flint-Hills-Resources.svg
    operates oil refineries in 6 states, chemical plants in 3, and 5 ethanol plants in another 3.
  • Georgia-Pacific Corporation:
    Georgia-Pacific-horiz.svg
    a paper and pulp company that makes and sells tissue, packaging, paper, building products and pulp.
  • Guardian Industries Corporation:
    Guardian-Industries.svg
    manufacturer of glass, automotive and building products.
  • i360:[5]
  • Infor:
    Infor.svg
  • Invista: produces chemical intermediates, polymers and fibers.
  • Koch Ag & Energy Solutions: fertilizers, energy, natural gas and methanol;
    • Koch Fertilizer LLC: one of the world's largest makers of nitrogen fertilizers.[53] Owns or has interests in fertilizer plants in the USA, Canada, Trinidad & Tobago, Venezuela, Italy, among others.[54][55]
    • Koch Energy Services LLC
    • Koch Methanol LLC
  • Koch Agronomic Services LLC
  • Koch Disruptive Technologies: venture arm.
  • Koch Engineered Solutions
  • Koch Equity Development LLC: investment and acquisition subsidiary.
  • Koch Supply & Trading
  • Koch Minerals:
  • Koch Pipeline:
  • Matador Cattle Company:
  • Molex: develops electronic interconnect systems for a variety of markets.
  • Arteva Europe Sarl: an "internal bank" which manages Koch Industries' European cash flows. Headquartered in Luxembourg.[42]
  • Sources: Koch Industries. Forbes. Accessed Sept.22.2020. ♦ Our Companies. Koch Industries Inc. Accessed Sept.22.2020.

KED: 2016, 2017, 2018, Webpage, KochEquity.com

such as refining, chemicals and biofuels; forest and consumer products; fertilizers; polymers and fibers; process and pollution control equipment and technologies; electronics; information systems; commodity trading; minerals; energy; glass; ranching; and investments.

Its subsidiaries are involved in the manufacturing, refining, and distribution of petroleum, chemicals, energy, fiber, intermediates and polymers, minerals, fertilizers, pulp and paper, chemical technology equipment, ranching, finance, commodities trading, and investing. The company is the largest non-Canadian landowner in the Athabasca oil sands.[6]

[3], [4], [58], [60] Climate Change Disinformation https://www.motherjones.com/politics/2014/11/history-of-koch-brothers-donation-network-money/

[2]

Lobbying + Revolving Door: 29 out of 32 Koch Industries' lobbyists in 2017 previously held govt jobs.[3]

Ownership

Koch Industries is co-owned by:
  • 42%: Charles Koch, who ties with his sister-in-law Julia at No.18 in Forbes Richest 2020.
  • 42%: Julia Koch and her three children, who inherited a 42% stake from her husband David, who died in Aug.2019. She ties with David Koch at No.18 in Forbes Richest 2020.
  • 16%: Trusts for the benefit of Elaine Tettemer Marshall, daughter in-law of J Howard Marshall and Anna Nicole Smith, and Elaine's children, Preston Marshall and E Pierce Marshall Jr.[3][14]

Timelines

  • Nov.2017: Koch Disruptive Technologies was established as Koch's venture arm, led by Charles Koch's son, Chase Koch.[4]
  • Nov.2016:
    Infor.svgDeals-Arrow-Left.svg
    Infor: an initial investment was made in the company, which builds SMB and Enterprise ERP software cloud products for industries including Manufacturing, Healthcare, Retail, Hospitality and Services. In Jan.2019, a further stake was acquired.ref In Feb.2020, an affiliate of Koch Equity Development LLC acquired the remaining 30% equity stake held by private equity firm Golden Gate Capital.[5] During Golden Gate's ownership, Infor completed 60 strategic acquisitions.[6] ToDo †link, link, link, link
  • Dec.2015:
    Truck-Lite.svgDeals-Arrow-Left.svg
    Truck-Lite Company LLC, a manufacturer of heavy-duty forward and signal lighting, mirrors, trailer harnesses and other safety and visibility systems, was acquired by Koch Equity Development, partnering with BDT Capital Partners LLC; a majority stake was acquired from Kelso & Company and Penske Corporation.[7] Penske retained a minority interest.[8]
  • Dec.2014: Oplink Communications, an optical networking device maker, was acquired.[9]
  • Sept.2014:
    Flint-Group.svgDeals-Arrow-Left.svg
    Flint Group Inc, a Luxembourg-based producer of printing inks and other print consumables, was acquired by Koch Equity Development LLC and Goldman Sach's private equity arm, from buyout firm CVC Capital Partners Ltd.[10][11]
  • 2012:
    Guardian-Industries-2010.svgDeals-Arrow-Left.svg
    Guardian Industries Corporation: Koch acquired a 44.5% minority interest in the privately-held company. In Feb.2017, Koch subsidiary KGIC Merger Corporation acquired the outstanding 55%.[12] ToDo †Guardian IndustriesWikipedia-W.svg, History, History Webpage, guardian.com
  • 2010: the company was among the first group of nearly 2,000 employers that applied for and were granted federal reimbursements from the U.S. Department of Health and Human Services, under the new Early Retiree Reinsurance Program established by the Patient Protection and Affordable Care Act, for providing health insurance to retirees too young to be eligible for Medicare.[28]
  • 2008: the company discovered that the French affiliate Koch-Glitsch had violated bribery laws allegedly securing contracts in Algeria, Egypt, India, Morocco, Nigeria and Saudi Arabia after an investigation by Ethics Compliance officer, Egorova-Farines.[26] After Koch Industries' investigative team looked into her findings, the four employees involved were terminated. According to journalist Jennifer Rubin, Koch Industries’ general counsel stated that Egorova-Farines failed to promptly share the findings, choosing instead to give the information to a manager at Koch-Glitsch who was later fired for bribery. According to Koch Industries’ general counsel, "Egorova-Farines was not fired but instead ran into performance problems, left the company to go on leave and never returned." Egorova-Farines sued Koch-Glitsch for wrongful termination in France, lost, and "was ordered to pay costs for bringing a frivolous case".[27]
  • Dec.2005:
    Georgia-Pacific-horiz.svgDeals-Arrow-Left.svg
    Georgia-Pacific Corporation, a direct-to-consumer paper products company, was acquired and delisted from the New York Stock Exchange. Consumer tissue brands included Quilted Northern, Angel Soft, Brawny, Sparkle, Soft 'n Gentle, Mardi Gras, So-Dri and Vanity Fair, as well as the Dixie brand of disposable cups, plates and cutlery. The building products manufacturing business supplies building products to lumber and building materials dealers, and large do-it-yourself warehouse retailers.[13] In May.2004, Koch subsidiary Koch Cellulose LLC had acquired Georgia-Pacific's pulp plants in Georgia and Mississippi, as well as stakes in three Brazilian ventures.[14][15] The USA plants make what the industry calls "paper fluff": water-absorbent material used in diapers, sanitary napkins and tampons.[16] ToDo †Georgia-PacificWikipedia-W.svg, Brands (2004), Brands (2020), History, Logos gp.comArchive-org-sm.svg, gp.com
  • Nov.2003: Invista, formed from "DuPont Textiles & Interiors", was acquired from EI du Pont de Nemours & Company. The two subsidiaries are KED Fiber Ltd and KED Fiber LLC. The purchase will include all of Invista's businesses, including Apparel, Interiors and Industrial, and Intermediates. Included are Invista's extensive portfolio of trademarks and brands including: Lycra (Spandex), Stainmaster, Coolmax, Thermolite, Cordura, Supplex, Tactel, Antron nylon, DBE, Dacron polyester, Orion acrylic, and C12, as well 8,000+ patents and significant proprietary intellectual property. Koch planned to integrate its KoSa business into Invista.[17]
    ToDo †link, link
  • Dec.1998: KoSa BV, a polyester, polymers and intermediates business, was jointly acquired (50/50) by Koch Industries and Mexico industrialist Isaac Saba's firm Imasab SA de CV, from Sanofi SA § Hoechst AG. KoSa was formed from Hoechst AG's Trevira polyester business. Operations included staple and filament textile fibers, technical filament, tire cord, packaging resins, and intermediates and polymers.[18] In Nov.2001, Koch Industries acquired Imasab SA de CV's 50%.[19]
  • 1989: Koch Nitrogen Company was formed in order to market ammonia. The next few years saw purchases of various ammonia facilities in Louisiana, Canada, and elsewhere, and ammonia sales agreements with firms in Australia, the UK, and other countries.
  • 1988: Koch Fertilizer LLC: the Gulf Central Pipeline and ammonia terminals connected to the pipeline, were acquired.
  • 2010: Koch Methanol LLC and Koch Agronomic Services LLC were formed.
  • Oct.2010, a plant in which Koch had a 35% stake was nationalized by the Venezuelan government.[56]
  • 2011:
    JH-Bunn-pre-2012.svgDeals-Arrow-Left.svg
    J&H Bunn Ltd, a fertilizer firm established in 1816 in, selling to retail and wholesale customers in the UK, was acquired by Koch Fertilizer Ltd, Koch Fertiliser LLC's UK subsidiary; J&H Bunn was hived up. The acquisition was subject to approval by the Office of Fair Trading.[20] jhbunn.co.ukArchive-org-sm.svg, jhbunn.comArchive-org-sm.svg, bunnfertiliser.comArchive-org-sm.svg

Koch Fertilizer changed its name to Koch Ag and Energy Solutions.[57]

  • Jun.1983: after a bitter legal and boardroom battle, the stakes of Frederick R Koch and William "Bill" Koch were bought out for $1.1bn, and Charles Koch and David Koch became majority owners in the company.[13]
  • 1970: Charles was joined at the family firm by his brother David Koch. Having started as a technical services manager, David became president of Koch Engineering in 1979.
  • 1969: Union Oil began trying to market their interest in Great Northern by telling potential buyers that Koch's controlling interest could be thwarted by currying favor with another owner, J. Howard Marshall II. When Marshall discovered this he threw his lot in with Koch, they together acquired a majority interest in the company and ultimately bought Union's interest.[21] Ownership of Pine Bend refinery led to several new businesses and capabilities, including chemicals, fibers, polymers, asphalt and other commodities such as petroleum coke and sulfur. These were followed by global commodity trading, gas liquids processing, real estate, pulp and paper, risk management and finance.[19]
  • 1968: Charles approached Union Oil of California about buying their interest in Great Northern Oil Company and its Pine Bend Refinery but the discussions quickly stalled after Union asked for a large premium.[19]
  • 1968: Wood River was later renamed the Rock Island Oil & Refining Company.[21] Wood River Oil and Refining Company was renamed Koch Industries in 1968 in honor of Fred Koch, the year after his death. At that time, it was primarily an engineering firm with part interest in the Pine Bend Refinery in Minnesota, a crude oil-gathering system in Oklahoma,[18] and some cattle ranches.[23]
  • 1967: Fred C Koch died, and his majority interest in the company was split amongst his four sons.
  • 1961: Charles Koch joined Rock Island, having started his career at the management consulting firm Arthur D Little. He became president in 1966 and chairman at age 32, upon his father's death in 1967.[12][22]
  • 1946: the firm acquired the Rock Island refinery and crude oil gathering system near Duncan, Oklahoma.
  • 1940: Fred C Koch developed an innovative crude oil refining process,[12] and founded the company.
  • 1940: Koch joined new partners to create the Wood River Oil and Refining Company.
  • 1929: Temporarily forced out of business in the United States, they turned to other markets, including the Soviet Union, where Winkler-Koch built 15 cracking units between 1929 and 1932.
  • 1927: they developed a more efficient thermal cracking process for turning crude oil into gasoline. This process threatened the competitive advantage of established oil companies, which sued for patent infringement.[18]
  • 1925: Fred C. Koch joined MIT classmate Lewis E. Winkler at an engineering firm in Wichita, Kansas, which was renamed the Winkler-Koch Engineering Company.

ToDo †{{{1}}}

Flint Group Inc

Flint-Group.svg

Flint Group is a global supplier of inks and non-ink print consumables, image transfer products, and chemicals to the packaging and print media industries. Post acquisition, Flint completed a series of acquisitions to grow its portfolio of digital and packaging printing inks and equipment.ref FlintGrp.com

ToDo: link, link, link
  • Sept.2014: Flint Group, a Luxembourg-based printing ink producer, was acquired by Koch Equity Development LLC and Goldman Sach's private equity arm from buyout firm CVC Capital Partners.[5][30][31]
  • 2005: Flint Group Inc was formed by the merger of Flint Ink Corporation and XSYS Print Solutions.
  • 2007: Day International was acquired, substantially increasing Flint Group's global position in the non-ink pressroom consumables market.
  • 2004: XSYS Print Solutions was the result of a union between ANI and BASF Printing Systems, both long-standing printing industry providers with locations around the world.
  • 1920: Flint Ink was founded in the USA, and grew consistently over time to become an internationally renowned supplier of printing inks and colourants.
ToDo: About Us: History, link, link, link, link

Flint Hills Resources LP

Flint-Hills-Resources.svg

ToDo: link, link, link
  • Jul.2014: PetroLogistics, a Houston-based manufacturer of chemical and polymer grade propylene, was acquired.[46][47]

Guardian Industries

Guardian, a leading manufacturer of float glass and fabricated glass products along with other diversified businesses, brings new capabilities and expertise to Koch in several highly technical manufacturing and distribution industries. After initially acquiring a 44% minority ownership stake during 2012, Koch acquired the remaining interest in 2017. 

Infor Inc

Infor, formerly known as Agilisys, delivers business-specific software worldwide to customers across the manufacturing, distribution and service industries. Supply chain management, customer relationship management and business intelligence software are among the programs offered.ref.ref Infor Enterprise Applications LP is the ultimate parent of the group. Infor.com

ToDo: Acquisitions,

Molex Inc

Molex produces pin-and-socket connectors, as well as specialized connectors and sensors for equipment used in data transmission, telecommunication, industrial applications, solar power, automotive electronics, commercial vehicles, aerospace and defense, medicine, and solid-state lighting.[74][75]

  • Oct.2016: Phillips-Medisize was acquired from Golden Gate Capital. Based in Hudson, Wisconsin, Phillips-Medisize is an outsource design, development and manufacturing, focused on medical solutions that include drug delivery, mobile and portable medical devices, and primary pharmaceutical packaging and diagnostics products.
  • Dec.2014: Oplink Communications,an optical networking device maker, was acquired, taken private, and merged into Molex.
  • 2013: Koch acquired Molex, a provider of electronic components.[29]

References

  1. ^ America's Largest Private Companies. Forbes. Accessed Sept.22.2020.
  2. ^ The Danger of President Pence. Trump’s critics yearn for his exit. But Mike Pence, the corporate right’s inside man, poses his own risks. Stephen Bannon, former White House strategist, worries that Pence would “be a President that the Kochs would own.” Jane Mayer, The New Yorker, Oct.23.2017. Original archived on Dec.28.2017.
  3. ^ Koch Industries. Open Secrets. Accessed Sept.22.2020.
  4. ^ What Koch Disruptive Technologies is looking for in its investments. VentureBeat, Mar.08.2018.
  5. ^ Koch Industries Agrees to Acquire All of Infor. Remaining equity stake will be purchased from Golden Gate Capital. Infor, Feb.04.2020.
  6. ^ Koch Industries Will Buy Up the Rest of Cloud-Software Firm Infor. Luisa Beltran, Barron's, Feb.04.2020.
  7. ^ Investment Companies: Truck-Lite. Kelso & Company. Original archived on Aug.25.2017.
  8. ^ Penske Sells Majority Share of Truck-Lite to Two Investment Groups. Transport Topics News, Sept.28.2015.
  9. ^ Koch Industries completes purchase of Oplink Communications. Associated Press, Kansas City Star, Dec.24.2014.
  10. ^ Koch, Goldman agree to buy ink maker Flint in $3 billion deal. Reuters, Apr.10.2014.
  11. ^ Goldman Sachs Merchant Banking Division Partners with Koch Industries Subsidiary to acquire Flint Group from CVC Capital Partners. Flint Group, Nov.02.2016.
  12. ^ Koch Industries Completes Acquisition of Guardian Industries Corp. Business Wire, Feb.01.2017.
  13. ^ Koch Industries Finalizes $21 Billion Purchase of Georgia-Pacific. Press Release, Georgia-Pacific Corporation, Dec.23.2005. Original archived on Sept.11.2006.
  14. ^ Georgia-Pacific And A Subsidiary Of Koch Industries, Inc. Sign Letter Of Intent For Koch To Acquire Pulp Manufacturing Assets In Georgia And Mississippi. Press Release, Georgia-Pacific Corporation, Jan.29.2004. Original archived on Feb.13.2004.
  15. ^ Georgia-Pacific And A Subsidiary Of Koch Industries Inc Sign Letter Of Intent for Koch to acquire pulp manufacturing assets in Georgia and Mississippi. Press Release, Georgia-Pacific Corporation, May.10.2004. Original archived on Sept.02.2006.
  16. ^ Koch Industries and Georgia-Pacific May Be a Perfect Fit. Leslie Wayne, The New York Times, Nov.17.2003. Original archived on Mar.02.2018.
  17. ^ Koch Industries Subsidiaries to Purchase Invista; Will Integrate KoSa with former DuPont Textiles & Interiors Unit. Business Wire, Nov.17.2003.
  18. ^ Celanese Sells Millhaven Polyester Unit to KoSa, Closes Staple Unit. Chemical Online, Nov.24.1999. Original archived on Sept.22.2020.
  19. ^ Koch completes takeover of KoSa. Rubber & Plastic News, Nov.14.2001. Original archived on Sept.22.2020.
  20. ^ Koch / J&H Bunn Ltd. OFT closed case: Anticipated acquisition by Koch Industries Inc of J & H Bunn Limited. Competition & Markets Authority, Gov.uk, Feb.24.2011.