KLH Capital is pleased to announce that it has exited it’s investment in Federal Resources Supply Company (“Federal Resources” or the “Company”) in a management buyout transaction that was supported by Alaris Royalty Corp. (“Alaris”). Federal Resources, based in Stevensville, MD, is a leading value‐added provider of mission critical chemical, biological, radiological, nuclear and explosive (“CBRNE”) detection and protective products and solutions for defense, first responder, homeland security, and maritime end users.
Robbie McWilliams, CEO of Federal Resources, led the transaction for the management team who, with the exit of KLH and other minority shareholders, became the majority owners of the company. “We have had a tremendous amount of success working with KLH and are excited about this next chapter of Federal Resource’s evolution. The new partnership with Alaris will help provide us access to the talent and capital that we need to continue growing our business,” said McWilliams.
In reflecting on the transaction, James Darnell, Partner at KLH Capital commented, “It has been a real pleasure to work with Robbie and his team at Federal Resources. They have built an amazing business with a world-class team, and we were honored to be able to support their growth. The most satisfying part was being able to facilitate a transaction that allowed them to become the majority owners of the business and truly control their own destiny.
“We couldn’t be more pleased to back the successful management team of Federal Resources who were significant owners ahead of this transaction and now control the company they are so passionate about. Their track record of growth and profitability is truly impressive. The barriers to entry in their market and the consistent demand from their customers also gives us confidence in the long term results of our investment”, said Steve King, President and Chief Executive Officer, Alaris.
ABOUT FEDERAL RESOURCES
Federal Resources is a Maryland based leading value‐added provider of mission critical products and solutions to defense, first responder, homeland security, and maritime end users. The Company is a leading provider of CBRNE equipment, tactical gear, tools and maritime solutions including Thermo Fisher Scientific, Smiths Detection, Blauer, and Hellan Strainer products. Federal Resources was founded in 1986 and employs 150 people.
ABOUT ALARIS ROYALTY CORP.
Alaris provides capital to private companies in a way that maximizes valuations and tax efficiency, and allows existing owners or management to maintain control of their common equity ownership while also not diluting their position. The structure is designed for entrepreneurs who wish to raise capital for a partial exit, generational transfer, recapitalization, acquisitions, management buyouts, or growth and who want to maintain control of their companies. Alaris has invested over $700 million to date and currently has investments in 14 Private Company Partners. Founded in 2004, Alaris is located in Calgary, Alberta, Canada.
ABOUT KLH CAPITAL
KLH Capital is a fully capitalized SBIC-licensed private equity firm which currently manages $165 million in capital. During our nearly 30-year business tenure, we have successfully completed more than 130 transactions, including recapitalizations, management buy-outs and buy-ins, family successions and retirement transitions, and corporate divestitures.