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ANS Distributing

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Sector

Distribution

Industry

Industrial Distribution

Transaction Type

Management Buyout

Status

Prior Investment

Business Description

ANS Distributing is a national full-line distributor of petroleum handling equipment for petroleum marketers (from single-site service stations to national chains), wholesalers, and technicians. The company offers its customers a complete range of custom-designed systems for both maintenance and construction needs. Headquartered in Phoenix, AZ, ANS Distributing also has distribution facilities in Cleveland, OH and Atlanta, GA.

Transaction Overview

Management of this privately owned business was seeking a financial partner that would help them finance the purchase of the business from a retiring owner. KLH Capital partnered with the management team to allow them to acquire the business from the exiting shareholder.

Post Transaction

During our investment period, KLH Capital arranged a new asset based line of credit to provide working capital availability for implementing management’s growth initiatives. The company also expanded its warehouse and office space and brought on new sales professionals, including a Vice President of Sales and Marketing. In June 2016, ANS Distributing was acquired by Jones & Frank, the premier provider of fueling system solutions in the United States. The combined company has unequaled scale and resources in the petroleum equipment industry to serve customers’ fueling equipment needs across North America.

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Federal Resources Supply Company

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Sector

Value-Added Distribution

Industry

Safety & Marine Equipment

Transaction Type

Majority Recapitalization

Status

Prior Investment

Business Description

Federal Resources is an industry leader in providing innovative and technologically advanced military, first responder, and maritime products. For decades, Federal Resources has been protecting our nation’s elite with these superior products, outstanding customer service, competitive pricing, and expert product knowledge.

Transaction Overview

Management of this family owned business partnered with KLH Capital in a recapitalization to facilitate an ownership transition that allowed the remaining management team to retain a significant equity position within the company, and provided a liquidity event for the retiring shareholders.

Post Transaction

KLH partnered with management to develop the business organically and through acquisition. Immediately post-transaction, KLH assisted with implementing new ERP and CRM systems in the business, helped recruit and develop additional sales professionals, and acquired HazMat IQ, a leading provider of specialty hazardous material training to federal, state, and local first responders.

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Ground Works Solutions

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Sector

Specialty Services

Industry

Soil & Foundation Remediation

Transaction Type

Management Buyout

Status

Prior Investment

Business Description

Ground Works Solutions is a leading provider of infrastructure repair and soil stabilization services to the residential, commercial, and industrial markets.

Transaction Overview

In this management buy-in transaction, the owner was seeking a liquidity event and ultimately a path to retirement from the business. He decided to remain onboard with the company in an advisory capacity post-transaction. KLH Capital partnered with an experienced manager to run the business day to day.

Post Transaction

KLH Capital hired a new CEO to develop the business organically and through add-on acquisitions. Since partnering with KLH, the company has executed five strategic acquisitions throughout the United States which expanded its presence into 31 additional states.

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Bell’O International

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Sector

Niche Manufacturing

Industry

Home Entertainment Furnishing

Transaction Type

Minority Recapitalization

Status

Prior Investment

Website

Business Description

Bell’O is a world renowned supplier to the consumer electronics and furniture industry for premium audio video furniture, home theater seating, flat-panel TV wall mounts, TV screen cleaner kits, and audio/video cables.

Transaction Overview

Bell’O partnered with KLH Capital to refinance its existing capital structure and provide liquidity for future growth.

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QualaWash Holdings

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Sector

Specialty Services

Industry

Bulk Transportation Services

Transaction Type

Management Buyout

Status

Prior Investment

Business Description

QualaWash is the nation’s largest provider of tank truck, tote, ISO tank, and rail car cleaning services to the bulk transportation industry. The company operates 53 strategically located facilities nationwide.

Transaction Overview

QualaWash was an orphaned division of a publicly traded company, Quality Distribution, Inc. KLH Capital partnered with the existing President of QualaWash to buy the division from the parent company in a corporate spin-off transaction.

Post Transaction

Immediately post-transaction, KLH established independent billing, accounting, and operating systems and facilitated the hiring of new sales executives to grow the existing business. After a year of partnership, KLH and management successfully acquired the nation’s largest independent steel intermediate bulk container cleaning provider and also acquired its largest competitor, PSC Container Services, LLC. These acquisitions quadrupled the size of the original business.

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Recovery Holdings

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Sector

Specialty Services

Industry

Asset Recovery

Transaction Type

Majority Recapitalization

Status

Prior Investment

Business Description

Recovery Holdings provides outsourced repossession management services to banks and auto finance companies across the country.

Transaction Overview

KLH recapitalized the business to provide liquidity to the two founders who continued to run the business day to day.

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Blake & Pendleton

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Sector

Specialty Services

Industry

Air Compressors

Transaction Type

Majority Recapitalization

Status

Prior Investment

Business Description

Founded in 1971 and located in Macon, Georgia, B&P supplies and services a broad range of equipment for the compressed air, pumping, heat transfer and mineral processing industries. The Company also offers a broad range of sophisticated on-site and consultative technical services to industrial customers throughout the Southeast.

Transaction Overview

Blake & Pendleton was owned by two individuals. The majority owner was looking to retire and the other wanted a financial partner to grow the company via add-on acquisitions. KLH Capital supported the minority equity owner in a recapitalization that allowed the majority owner to realize liquidity for his investment and take a step back from day to day operations.

Post Transaction

Within six months of closing the transaction, KLH Capital and the CEO targeted a variety of competitors in adjacent geographic territories and successfully completed an add-on acquisition. The company continued its positive momentum by opening up two new locations in adjacent states and acquiring a world class provider of compressed air energy audit services.

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Energy Hardware

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Sector

Value-Added Distribution

Industry

Industrial Fasteners & Hardware

Transaction Type

Majority Recapitalization

Status

Prior Investment

Business Description

Energy Hardware is a value-added, global distributor of fasteners, machined parts, seals, and gaskets to the worldwide power generation industry.

Transaction Overview

The two owners of Energy Hardware partnered with KLH Capital in a recapitalization to diversify their net worth and to acquire a financial partner that could support the exponential growth of the company.

Post Transaction

Energy Hardware has continued to grow rapidly and expanded its product offering at the request of its customers. The company has also started shipping product into the wind energy market and has experienced significant volume increases over subsequent years.

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Everlasting Granite Memorial Co.

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Sector

Value-Added Distribution

Industry

Stone Memorials

Transaction Type

Majority Recapitalization

Status

Prior Investment

Business Description

Everlasting Granite is a full service business to business wholesale distributor of granite and bronze memorials. For more than 37 years, Everlasting Granite has supported the death care industry with a comprehensive line of exceptional memorials and service which exceeds our customer’s expectations.

Transaction Overview

The founders of the business were seeking a liquidity event that would enable them to pass the company along to their son, who entered the business approximately 10 years prior. The son, who was President at the time, wanted to continue the family legacy while maintaining a significant equity stake in the company. In partnering with KLH Capital, the Company was able to achieve these goals, and continue to build upon its multi-generational success.

Post Transaction

After partnering with KLH Capital, the company bolstered its senior management team by adding a top notch CFO and continued to grow organically.

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Florachem Corporation

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Sector

Value-Added Distribution

Industry

Aroma Chemicals

Transaction Type

Majority Recapitalization

Status

Prior Investment

Business Description

Florachem is a worldwide distributor of specialty aroma chemicals and essential oils to the fragrance, flavor, consumer, and industrial products industries.

Transaction Overview

The company’s owner, Steve McAlister, partnered with KLH Capital in a recapitalization to diversify his net worth while providing capital to continue the company’s growth.

Post Transaction

The owner was previously reluctant to take advantage of certain opportunities in the industry due to his risk adverse nature and the company’s large working capital needs. After partnering with KLH Capital, the company completed an add-on acquisition of a manufacturing facility in Texas, developed proprietary lines of chemical products, and continued to expand organically.