OMERS Private Equity has signed an agreement to acquire The Kenan Advantage Group from Goldman Sachs Capital Partners and Centerbridge Partners.
Kenan Advantage Group is North America’s largest tank truck transporter and logistics provider, delivering fuel, chemicals, industrial gases, and food-grade products. KAG is the only independent fuels delivery carrier with a nationwide network, having operations in 40 states and the ability to deliver within all 48 states of the continental United States and Mexico. In addition, KAG operates in 16 locations throughout Alberta, British Columbia, Saskatchewan and Northwest Territories. The company was founded in 1991 and is headquartered in North Canton, OH (www.thekag.com).
“The investment in KAG is consistent with OMERS strategy of acquiring industry leading companies with world class management,” said Michael Graham, OMERS Senior Managing Director and Headof North America. “The company has steadily grown to become the most sophisticated platform of scale in the stable and growing liquid bulk transit space.”
According to OMERs, the future organic growth of KAG will be supplemented by strategic acquisitions. “We look forward to partnering with CEO Dennis Nash and the entire management team to support the company’s next phase of growth,” said William Coughlin, Managing Director at OMERS. “We believe that KAG will continue to distinguish itself as the market leader in the highly fragmented liquid bulk transportation industry in the years ahead.”
OMERS Private Equity manages the private equity activities of OMERS, one of Canada’s largest pension funds. The group’s investment strategy includes the active ownership of businesses in North America and Europe. Sectors of interest include manufacturing, financial and business services, industrial and consumer products, transportation, and technology. Investment sizes range from $100 million to $500 million. The firm is located in Toronto with offices in New York and London and has $6 billion of investments under management (www.omerspe.com).
“We are excited about our new partnership with OMERS. The group’s culture, large capital base and international presence make them an ideal partner for us,” said Dennis Nash, CEO of KAG.
This transaction is expected to close in the third quarter of 2015.
© 2015 PEPD • Private Equity’s Leading News Magazine • 6-18-15
