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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.

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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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Military Models Distributors

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Sector

Value-Added Distribution

Industry

Hobby & Craft

Transaction Type

Management Buyout

Status

Prior Investment

Business Description

Military Model Distributors is a distributor of model kit sets to military hobbyist and enthusiasts.

Transaction Overview

KLH partnered with an industry veteran to purchase the business from an owner who wished to retire in this management led buy-out.

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The Main Resource

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Sector

Value-Added Distribution

Industry

Automobile Aftermarket Parts

Transaction Type

Management Buyout

Status

Prior Investment

Business Description

The Main Resource specializes in business to business distribution of high demand, low cost, and difficult to locate replacement parts for the automobile aftermarkets.

Transaction Overview

KLH Capital partnered with an experienced manager in this management led buy-out, allowing the existing shareholders to retire and monetize their investment, while providing equity incentives to the continuing managers.