Council Capital has sold EspriGas, a network provider of medical and industrial gases, to Kaltroco.
EspriGas utilizes its network of gas supply partners to handle the logistical needs of large, multi-site companies. The company’s gases include nitrogen, helium, oxygen, carbon dioxide, acetylene, argon, propane, nitrous oxide and other medical mixtures. EspriGas’ customer base includes Fortune 1000 companies across a variety of industries. The company, led by CEO Mike Walsh, is headquartered in Atlanta, GA (www.esprigas.com).
Council Capital acquired TMG Gases in partnership with industry executive Mike Walsh in April 2013 and the company’s name was changed to EspriGas in March 2017. Under Council Capital’s ownership, EspriGas has more than doubled revenue and EBITDA. Council Capital was active in facilitating introductions to key new customers, supporting the company’s expansion into new verticals, and investing in the company’s systems and processes.
“It has been a pleasure to work with Mike and his team. EspriGas is an excellent example of how we leverage the “Council Model” to partner management teams with a deep bench of industry and functional experts and facilitate new customer relationships,” said Grant Jackson, managing general partner at Council Capital. “Whether it was expanding within healthcare, finding new markets, automating operations, or acquiring competitors, we were happy to provide EspriGas with access to the right mix of resources to help them grow and execute.”
“Council Capital was the perfect match for EspriGas. With access to strategic thinkers, introductions to potential customers, and support from shared portfolio resources, the Council Model helped us through every stage of our growth,” said Mr. Walsh.
Kaltroco, the buyer of EspriGas, is a San Francisco-based private equity firm that invests in the consumer and services sectors. “We are incredibly excited to be partnering with Mike and his team,” said Kenneth Hammond, managing director and the head of North American investments for Kaltroco. “We believe EspriGas is an exceptional business, with a differentiated service model, a loyal and highly satisfied customer base, and an impressive track record of historical growth. We look forward to supporting Mike and his team as they pursue the next stage of the company’s growth and extend the business into new channels and geographies.”
“We believe Kaltroco is an ideal partner as we embark on the next phase of our growth journey. Kaltroco’s international reach, high-quality network, and deep private equity experience should all prove valuable as we pursue our strategic goals,” added Mr. Walsh. “We truly enjoyed working with Council Capital over the past six years, and we are very excited to have found another high-quality partner in Kaltroco.”
Council Capital invests in lower middle market healthcare-related companies that have revenues of $5 million to $50 million, EBITDA of up to $7 million, and enterprise values of $10 million to $50 million. The firm is led by its partners Grant Jackson, Dennis Bottorff, Katie Gambill, and Eric Keen. Council Capital was founded in 2000 and is headquartered in Nashville (www.councilcapital.com).
© 2019 Private Equity Professional | August 13, 2019