December 2022
Case
HBS Case Collection

KKR at CHI Overhead Doors (A)

Format:Print
| Language:English
| Pages:21

Abstract

This case examines the decision by private equity firm KKR to grant equity to every employee at portfolio company CHI Overhead Doors upon purchasing the company in 2015. The case explores whether this initiative will create shared value, growing profits through better incentive alignment while creating wealth for low-wage manufacturing workers. While CHI witnessed some initial gains in safety and productivity, executives and KKR struggled with how to instill in employees a sense of ownership that would unlock greater value. The (B) case discusses the strategies implemented to overcome employee skepticism. The (C) case describes KKR’s sale of CHI, the wealth created for employees, and the next steps KKR was planning to expand the employee ownership strategy.