TriWest Capital Partners has sold its portfolio company RTL-Westcan to strategic buyer Kenan Advantage Group. TriWest first invested in RTL-Robinson Enterprises in September 2006. The company then merged with Westcan Bulk Transport in May 2007 to create the largest bulk commodity hauler in Western Canada.
RTL-Westcan specializes in the transportation of liquid and dry bulk commodities, including fuel, asphalt, ammonia, fertilizers, grains, ethanol, salt, sulfur and lime. The company serves the energy, mining, agriculture and infrastructure end markets. RTL-Westcan was founded in 1964 and is headquartered in Edmonton, Canada and operates out of 14 locations throughout Alberta, British Columbia, Saskatchewan and the Northwest Territories (www.westcanbulk.ca).
Kenan Advantage Group (KAG) is a tank truck hauler and logistics provider, transporting fuel, chemicals and food-grade products. The company has five operating groups consisting of the Fuels Delivery Group, Specialty Products Group, Merchant Gas Group, Logistics Group and KAG Canadian Group. KAG’s fleet consists of approximately 6,200 power units and 9,700 trailers. KAG also provides specialized supply chain logistics services through KAG Logistics and KAG Ethanol Logistics. The company is headquartered in North Canton, OH (www.thekag.com) (www.kaglogistics.com).
KAG funded the acquisition of RTL-Westcan with interim borrowings under its senior secured credit facility. KAG intends to refinance a portion of its senior secured credit facility with US and Canadian dollar term loans and unsecured high yield notes.
TriWest invests in companies with operating earnings or EBITDA in the range of $10 million to $50 million. Sectors of interest include service, manufacturing and distribution. The firm has raised $775 million in committed capital through four funds and has invested in 27 companies to date. TriWest was founded in 1998 and is based in Calgary, Alberta (www.triwest.ca).
Harris Williams & Co. (www.harriswilliams.com) acted as an advisor to RTL-Westcan. The transaction was led by Frank Mountcastle, Jason Bass, Joe Conner, Jershon Jones and Jeff Kidd from Harris Williams & Co.’s Transportation & Logistics (T&L) Group.
“RTL-Westcan has built an impressive platform for bulk hauling in Western Canada. The geographic areas served by the company represent some of the fastest growing regions in North America,” said Mr. Mountcastle, a managing director in Harris Williams & Co.’s T&L Group. “This partnership will enable RTL-Westcan to continue to execute its growth strategy while also providing KAG with a strategic platform to continue its expansion into new geographies and new markets in North America. This transaction is a great outcome for all parties involved.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-22-13