KLH Capital has acquired Thorpe Specialty Services, a provider of industrial maintenance services, from The CapStreet Group.
Thorpe provides refractory, corrosion, scaffolding, and insulation services to North American-based companies that utilize assets that operate in high-temperature, high-abrasive, and highly corrosive environments. Many of Thorpe’s customers are active in the chemical, petrochemical, power, natural resources, pulp and paper, metals, and mining sectors.
Thorpe, led by CEO Chad Fletcher, has more than 1,250 employees and is headquartered in Houston with additional branch locations across Texas, Louisiana, Oklahoma, Alabama, and Western Canada. Mr. Fletcher and other members of Thorpe’s senior management team have invested in Thorpe in partnership with KLH.
“Picking a partner who shares a growth-oriented culture was critical for me and my team, and we are excited to springboard Thorpe into the future,” said Mr. Fletcher. “Thorpe and KLH share a passion for the privileged role we both play as trusted partners – Thorpe as a maintenance planning and solutions expert who our key clients expect to sit at the planning table and KLH as not only a financial resource, but as an experienced business owner, who I genuinely like, who adds value to developing the future prospects of companies in whom they partner with.”
“We are thrilled to welcome Chad and the entire Thorpe team into the KLH family,” said James Darnell, a partner at KLH. “The company and management team have done a fantastic job positioning itself to capitalize on the tremendous set of opportunities before it, and we are eager to support Thorpe and its employees as we continue to build upon their vision.”
Capstreet first invested in Thorpe in 2010. “Through our partnership with management, Capstreet helped Thorpe transform its business by strengthening its leadership team, improving operations, and expanding its service offerings, ultimately enabling the company to better serve its customers,” said George Kelly, the managing partner at Capstreet. “We’re pleased with this positive outcome and wish the Thorpe team the best of luck as they seek further growth.”
Houston-headquartered CapStreet primarily makes control investments in privately held, lower middle-market companies that have annual EBITDA between $3 million and $15 million and are active in the software, tech-enabled services, and industrial business services sectors.
KLH has extensive experience investing in the industrial maintenance services sector. Back in November 2021, the firm acquired The Warehouse Rentals & Supplies, a Pennsylvania-headquartered supplier of surface preparation equipment and supplies including electric and gas hydraulic paint sprayers, blast pots, abrasives, hoses, nozzles, and respiration gear. The company serves companies operating in the industrial, commercial, infrastructure, transportation, and energy industries.
KLH makes majority and minority investments in family- and founder-owned distribution, specialty services, and niche manufacturing companies that have EBITDA from $4 million to $20 million. KLH was founded in 2005 and is headquartered in Tampa, Florida.
© 2022 Private Equity Professional | September 9, 2022
