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The Warehouse Rentals & Supplies

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Sector

Value-Added Distribution

Industry

Industrial Abrasive Blasting & Painting

Transaction Type

Management Buyout

Status

Current Investment

Website

Lead Partner

Business Description

The Warehouse Rentals & Supplies (“TWRS”), based in Greensburg, PA, is a leading surface preparation equipment rental and value-added distribution company offering abrasive blasting, painting, and safety equipment, consumables, and supplies to blue-chip customers in the industrial, commercial, infrastructure, transportation, and energy industries. With strategically located branches in the Mid-Atlantic, Midwest, and across the Gulf Coast, TWRS has cultivated top-tier relationships with the industry’s highest quality equipment and supplies vendors and the company’s OEM-certified technicians deliver quick response on-site repair services.

Transaction Overview

KLH Capital sponsored the management team of TWRS to complete a buyout of the company’s retiring founder and support management’s vision to become a leading abrasive blasting and painting equipment distributor with a national footprint.

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D&H United

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Sector

Industrial Services & Value-Added Distribution

Industry

Retail Fueling Industry

Transaction Type

Management Buyout

Status

Current Investment

Lead Partner

Business Description

Based in Houston, Texas, D&H United Fueling Solutions is leading, turnkey service provider and distributor to the retail fueling industry primarily serving the South and Southwest markets. With more than 270 employees, the company provides maintenance, installation, and environmental services, as well as parts and equipment to a large customer base comprised of blue-chip fuel retailers, commercial clients, and governmental agencies.

Transaction Overview

KLH partnered with the management team of D&H United Fueling Solutions to recapitalize the business. The transaction provided partial liquidity to key managers and full liquidity to Third Century, an independent sponsor that facilitated the acquisition of D&H United Fueling Solutions by the management team in 2015.

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Premiere Precision Components

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Sector

Value-Added Distribution

Industry

Rubber Seals, Gaskets & O-Rings

Transaction Type

Recapitalization

Status

Prior Investment

Business Description

Based in Holiday, FL, Premiere Precision Components is a leading, value-added supplier of high-volume, custom manufactured molded rubber, plastic, and metal components such as seals, O-rings, gaskets, boots, assemblies, and bonded parts sold to a variety of end markets, including the communications, HVAC, pool & spa, and lawncare industries. Premiere Precision Components differentiates itself from its competition by providing value-added service at each step in the procurement process, simplifying the complex logistics of sourcing parts so that customers can focus on their core businesses.

Transaction Overview

The founders of this privately held business partnered with KLH in a recapitalization to facilitate a partial liquidity event for the shareholders, while providing the company with a value-added partner and a capital structure designed to support management’s future growth plans.

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BMI Merchandise

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Sector

Value-Added Distribution

Industry

Prize Merchandize for FEC Industry

Transaction Type

Recapitalization

Status

Current Investment

Lead Partner

Business Description

Based in Lakewood, New Jersey, BMI Merchandise is a leading distributor of merchandise used in redemption centers, direct-pay games, tickets or points-to-prizes games, and prize hubs located in family entertainment centers (“FEC”), amusement arcades, bowling centers, restaurants, cruise ships, movie theaters, theme parks, skating centers and sports complexes. BMI Merchandise’s proprietary information technology infrastructure allows customers to monitor and manage store inventory, automate merchandise restocking, and collect data required for ongoing merchandising decisions.

Transaction Overview

KLH recapitalized the business providing a partial liquidity event for the two owners and aligning management with experienced partners capable of providing the capital and expertise needed to grow the business.

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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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Energy Hardware

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Sector

Value-Added Distribution

Industry

Industrial Fasteners & Hardware

Transaction Type

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

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.

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Florida Lawn & Garden

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Sector

Value-Added Distribution

Industry

Lawn & Garden Equipment

Transaction Type

Management Buyout

Status

Prior Investment

Business Description

Florida Lawn & Garden is a rapidly growing value-added distributor of lawn and garden equipment to the professional landscape maintenance market.

Transaction Overview

KLH Capital invested in the company through a management buy in allowing its owner to harvest the value in the business and retire. KLH Capital identified and recruited a new CEO who, together with the management team, received a significant equity stake in the company to align shareholder incentives.

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