Providence Equity Partners has acquired a majority equity interest in KPA, a provider of environmental health and safety services (EHS), from CIVC which will maintain a minority equity interest in the company.
KPA provides EHS risk management through its cloud-based software platform and through recurring on-site audit and loss control services. The company’s customers are active in the automotive, collision repair, manufacturing, insurance, and distribution & logistics industries.
KPA’s products and services are used at more than 10,000 customer locations – primarily middle-market organizations with distributed locations – for regulatory compliance; risk control; asset protection; and to train, retain, and manage employees. KPA was founded in 1986 and is led by CEO Vane Clayton. The company is headquartered near Boulder in Lafayette, CO (www.kpaonline.com).
“We believe the compliance market has tremendous potential for long-term growth and that KPA will continue to capitalize on its leading middle-market position for subscription-based compliance solutions,” said Will Hughes, a Managing Director at Providence. “KPA is a highly attractive compliance platform with outstanding client retention, high recurring revenue, consistent organic growth, and a strong track record integrating acquisitions.”
Providence invests in the media, entertainment, communications and information industries and has approximately $54 billion of capital under management. The firm was founded in 1989 and is based in Providence, RI with additional offices in New York and London (www.provequity.com).
CIVC first invested in KPA in September 2014. “CIVC is proud to have been a part of KPA’s fantastic growth in the compliance marketplace over the past four years during which time the company has launched new product lines, expanded to new end markets, and tripled earnings,” said Scott Schwartz, a Partner at CIVC Partners. “We’re excited to continue our investment in the company and look forward to partnering with KPA during this next phase of growth.”
CIVC invests from $15 million to $85 million in companies that have at least $5 million of EBITDA. Sectors of interest include business services and financial services. Since 1989, the firm has invested just under $1.6 billion in 62 platform companies. CIVC is headquartered in Chicago (www.civc.com).
© 2018 Private Equity Professional | August 9, 2018
