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MS Industrial

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Sector

Specialty Services

Industry

Heavy Industrial Fabrication & Service

Transaction Type

Majority Recapitalization

Status

Prior Investment

Business Description

MS Industrial, formerly Mid-State Machine and Fabricating, is a leading provider of outsourced fabrication, maintenance, and field services to the mining, chemical, power, and general manufacturing industries. Since its founding in 1973, MS Industrial has grown into a complete industrial services organization serving the mission-critical needs of its customers across the country, and has expanded its facility into one of the largest machine and fabricating shops in the southeastern U.S.

Transaction Overview

The Management of this family owned business wanted to begin planning for their ultimate retirement, while also partnering with a growth-oriented financial partner. KLH was able to structure and close on a transaction that accomplished both of these goals, while also providing the capital needed to pursue select acquisitions and continue the tremendous track record of the company to date.

Post Transaction

KLH supported the company with a number of investments in its infrastructure, including the hiring of their first ever CFO, Controller and Director of Technology as well as the implementation of a new ERP system and automated time capture systems.

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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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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.

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Nelbud Services Group

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Sector

Specialty Services

Industry

Commercial Kitchen Cleaning

Transaction Type

Majority Recapitalization

Status

Prior Investment

Website

Business Description

Nelbud is a leading supplier of industrial fire prevention services to the food service industry, specializing in the removal of grease from hoods, vents, ducts, and fans.

Transaction Overview

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

Post Transaction

Since partnering with KLH Capital, Nelbud has pursued add-on opportunities to expand into Las Vegas, New York City, and the West Coast.

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Andrew M. Martin Co.

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Sector

Niche Manufacturing

Industry

Unit Dose Packaging

Transaction Type

Majority Recapitalization

Status

Prior Investment

Website

Business Description

AMMCO is one of the nation’s largest providers of unit dose packaging to the pharmaceutical industry.

Transaction Overview

KLH Capital partnered with AMMCO in a recapitalization to provide liquidity to the founder of the business who continued to run the business day to day.