Investments

Filter

21st Century Newspapers

Media

Pontiac, MI

Exited

August 1997

Owner and operator of daily and weekly newspapers in the Michigan suburbs

21st Century Newspapers
NoCaseStudy
Media
Media
Exited
1997
63
Pontiac, MI
Media
August 1997
19970821
/investment-companies/21st-century-newspapers

360networks

Services

Hamilton, Bermuda

Exited

July 1999

International telecommunications company with a focus on fiber optic cable development and international carrier operations

360networks
NoCaseStudy
Services
Services
Exited
1999
60
Hamilton, Bermuda
Services
July 1999
19990714
/investment-companies/360networks

4Refuel

Services

Langley, British Columbia / Oakville, Ontario

Current

September 2013

View Website

Provider of mobile on-site refueling and fuel management services in Canada and the U.S.

Kelso Team

Church Moore
Investment Partner
Sandy Osborne
Investment Partner
Hugh McBride
Vice President
Dan Slutsky
Associate

4Refuel
NoCaseStudy
Services
Services
Current
2013
10
Langley, British Columbia / Oakville, Ontario
Church Moore
Investment Partner
Sandy Osborne
Investment Partner
Hugh McBride
Vice President
Dan Slutsky
Associate
Services
September 2013
20130917
/investment-companies/4refuel

Ajax Resources

Energy

Houston, TX

Current

October 2015

View Website

Exploration and production company focusing on oil and gas development in the Permian Basin

Kelso Team

Frank Loverro
Co-Chief Executive Officer
Sandy Osborne
Investment Partner
Alec Hufnagel
Vice President

Ajax Resources
NoCaseStudy
Energy
Energy
Current
2015
6
Houston, TX
Frank Loverro
Co-Chief Executive Officer
Sandy Osborne
Investment Partner
Alec Hufnagel
Vice President
Energy
October 2015
20151014
/investment-companies/ajax-resources

American Beacon

Financial Services

Dallas, TX

Current

April 2015

View Website

Leading asset management platform serving institutional and retail investors

Kelso Team

Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Forrest Compton
Associate

American Beacon
NoCaseStudy
Financial Services
Financial Services
Current
2015
8
Dallas, TX
Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Forrest Compton
Associate
FinancialServices
April 2015
20150430
/investment-companies/american-beacon

American Buildings

Industrial

Exited

July 1986

Manufacturer of pre-engineered steel buildings

American Buildings
NoCaseStudy
Industrial
Industrials
Exited
1986
98
Industrial
July 1986
19860703
/investment-companies/american-buildings

American Standard

Industrial

Exited

April 1988

Manufacturer of building supplies, air conditioning and electronic braking systems for trucks

American Standard
NoCaseStudy
Industrial
Industrials
Exited
1988
92
Industrial
April 1988
19880426
/investment-companies/american-standard

Americold

Industrial

Exited

December 1986

Operator of refrigerated warehouses

Americold
NoCaseStudy
Industrial
Industrials
Exited
1986
95
Industrial
December 1986
19861224
/investment-companies/americold

AMF Bowling

Consumer

Richmond, VA

Exited

April 1996

Owner and operator of commercial bowling centers in the United States and worldwide

AMF Bowling
NoCaseStudy
Consumer
Consumer
Exited
1996
67
Richmond, VA
Consumer
April 1996
19960430
/investment-companies/amf-bowling

Aquilex

Services

Atlanta, GA

Exited

December 2008

Leading provider of critical maintenance, repair and industrial cleaning services to the energy industry

Aquilex
NoCaseStudy
Services
Services
Exited
2008
29
Atlanta, GA
Services
December 2008
20081230
/investment-companies/aquilex

Arkansas Best

Industrial

Exited

July 1988

Less-than-truck load trucking company

Arkansas Best
NoCaseStudy
Industrial
Industrials
Exited
1988
90
Industrial
July 1988
19880727
/investment-companies/arkansas-best

Armkel

Consumer

Princeton, NJ

Exited

September 2001

Leading marketer and manufacturer of well-recognized, branded personal care consumer products

Armkel
NoCaseStudy
Consumer
Consumer
Exited
2001
55
Princeton, NJ
Consumer
September 2001
20010928
/investment-companies/armkel

Augusta Sportswear

Consumer

Augusta, GA

Current

April 2012

View Website

Leading national supplier of on-the-field team uniforms and other team related sportswear

Kelso Team

Chris Collins
Investment Partner
Matt Edgerton
Investment Partner
Dave Wahrhaftig
Senior Advisory Partner
Tom Wall
Senior Advisory Partner
Keith Castaldi
Vice President
Rob Martin
Associate

Augusta Sportswear
NoCaseStudy
Consumer
Consumer
Current
2012
15
Augusta, GA
Chris Collins
Investment Partner
Matt Edgerton
Investment Partner
Dave Wahrhaftig
Senior Advisory Partner
Tom Wall
Senior Advisory Partner
Keith Castaldi
Vice President
Rob Martin
Associate
Consumer
April 2012
20120402
/investment-companies/augusta-sportswear

Buckeye Partners

Energy

Houston, TX

Exited

June 2007

Primary distributor of petroleum in the East and Mid-West of the United States

Buckeye Partners
NoCaseStudy
Energy
Energy
Exited
2007
33
Houston, TX
Energy
June 2007
20070625
/investment-companies/buckeye-partners

BWAY

Industrial

Atlanta, GA

Exited

February 2003

One of the largest manufacturers of rigid metal, plastic and hybrid containers in North America

BWAY
NoCaseStudy
Industrial
Industrials
Exited
2003
53
Atlanta, GA
Industrial
February 2003
20030207
/investment-companies/bway

Cambridge Display Technology

Industrial

Cambridge, United Kingdom

Exited

July 1999

Patent-holder and principal enabler of the next generation of display technologies using Light Emitting Polymers

Cambridge Display Technology
NoCaseStudy
Industrial
Industrials
Exited
1999
59
Cambridge, United Kingdom
Industrial
July 1999
19990723
/investment-companies/cambridge-display-technology

Charter Communications Companies

Media

St. Louis, MO

Exited

August 1994

Owner and operator of cable television properties

Charter Communications Companies
NoCaseStudy
Media
Media
Exited
1994
74
St. Louis, MO
Media
August 1994
19940803
/investment-companies/charter-communications-companies

Citation

Industrial

Birmingham, AL

Exited

November 1999

Manufacturer of cast, forged and machined components made from iron, steel and aluminum

Citation
NoCaseStudy
Industrial
Industrials
Exited
1999
57
Birmingham, AL
Industrial
November 1999
19991130
/investment-companies/citation

Club Car

Industrial

Exited

November 1988

Manufacturer of golf cars, utility and transportation vehicles for commercial, industrial and recreational purposes

Club Car
NoCaseStudy
Industrial
Industrials
Exited
1988
89
Industrial
November 1988
19881115
/investment-companies/club-car

Consolidated Vision

Consumer

Pennsauken, NJ

Exited

April 1997

Retailers of prescription eyeglasses and contact lenses and franchisors of retail optical stores

Consolidated Vision
NoCaseStudy
Consumer
Consumer
Exited
1997
66
Pennsauken, NJ
Consumer
April 1997
19970428
/investment-companies/consolidated-vision

Crescent Point Energy

Energy

Calgary, Alberta, Canada

Exited

March 2008

Oil and gas company focused on crude oil production in southern Saskatchewan, Canada

Crescent Point Energy
NoCaseStudy
Energy
Energy
Exited
2008
30
Calgary, Alberta, Canada
Energy
March 2008
20080324
/investment-companies/crescent-point-energy

Cronos

Financial Services

Hamilton, Bermuda

Exited

July 2010

Leading lessor of intermodal shipping containers

Cronos
NoCaseStudy

Kelso was involved in myriad ways.

Financial Services
Financial Services
Exited
2010
24
Hamilton, Bermuda
FinancialServices
July 2010
20100727
/investment-companies/cronos

Custom Building Products

Industrial

Seal Beach, CA

Exited

April 2005

Leader in flooring preparation products and tile and stone installation systems for residential and commercial projects

Custom Building Products
NoCaseStudy
Industrial
Industrials
Exited
2005
45
Seal Beach, CA
Industrial
April 2005
20050429
/investment-companies/custom-building-products

CVR Energy Companies

Energy

Sugar Land, TX

Exited

June 2005

One of the largest independent petroleum refiners and marketers in the mid-continental U.S.

CVR Energy Companies
NoCaseStudy
Energy
Energy
Exited
2005
44
Sugar Land, TX
Energy
June 2005
20050624
/investment-companies/cvr-energy-companies

Cygnus Publishing

Media

Jacksonville, FL

Exited

June 1997

Publisher of controlled circulation trade and business magazines in the U.S.

Cygnus Publishing
NoCaseStudy
Media
Media
Exited
1997
65
Jacksonville, FL
Media
June 1997
19970605
/investment-companies/cygnus-publishing

Dakota Growers Pasta

Consumer

Carrington, ND

Exited

May 2007

Manufacturer of pasta for the private label, retail, foodservice and ingredient markets

Dakota Growers Pasta
NoCaseStudy
Consumer
Consumer
Exited
2007
35
Carrington, ND
Consumer
May 2007
20070509
/investment-companies/dakota-growers-pasta

Del Laboratories

Consumer

Uniondale, NY

Exited

January 2005

Manufacturer and marketer of cosmetics and over-the-counter pharmaceuticals

Del Laboratories
NoCaseStudy
Consumer
Consumer
Exited
2005
48
Uniondale, NY
Consumer
January 2005
20050127
/investment-companies/del-laboratories

Delphin Shipping

Industrial

New York, NY

Current

July 2010

Owner of dry bulk ships

Kelso Team

Frank Loverro
Co-Chief Executive Officer
Chris Collins
Investment Partner
Hank Mannix
Investment Partner
Michael Goldberg
Senior Advisory Partner
Hugh McBride
Vice President

Delphin Shipping
NoCaseStudy
Industrial
Industrials
Current
2010
25
New York, NY
Frank Loverro
Co-Chief Executive Officer
Chris Collins
Investment Partner
Hank Mannix
Investment Partner
Michael Goldberg
Senior Advisory Partner
Hugh McBride
Vice President
Industrial
July 2010
20100719
/investment-companies/delphin-shipping

Douglas Broadcasting

Media

Exited

May 1992

Operator of radio stations

Douglas Broadcasting
NoCaseStudy
Media
Media
Exited
1992
80
Media
May 1992
19920515
/investment-companies/douglas-broadcasting

DS Waters of America

Consumer

Atlanta, GA

Exited

November 2005

Bottler and distributor of water and related products to the home and office delivery and retail markets throughout the U.S.

DS Waters of America
NoCaseStudy
Consumer
Consumer
Exited
2005
43
Atlanta, GA
Consumer
November 2005
20051115
/investment-companies/ds-waters-america

EACOM Timber

Industrial

Montreal, Quebec, Canada

Current

June 2013

View Website

Canadian lumber manufacturer with ownership of sawmills and timber rights in Eastern Canada

Kelso Team

Phil Berney
Co-Chief Executive Officer
Matt Edgerton
Investment Partner
George Matelich
Senior Advisory Partner
Bill Frayer
Vice President
Forrest Compton
Associate

EACOM Timber
NoCaseStudy
Industrial
Industrials
Current
2013
11
Montreal, Quebec, Canada
Phil Berney
Co-Chief Executive Officer
Matt Edgerton
Investment Partner
George Matelich
Senior Advisory Partner
Bill Frayer
Vice President
Forrest Compton
Associate
Industrial
June 2013
20130611
/investment-companies/eacom-timber

Eagle Bulk Shipping

Industrial

New York, NY

Exited

February 2005

Owner of dry bulk ships

Eagle Bulk Shipping
NoCaseStudy
Industrial
Industrials
Exited
2005
47
New York, NY
Industrial
February 2005
20050201
/investment-companies/eagle-bulk-shipping

Eagle Family Foods Group

Consumer

Richfield, OH

Current

December 2015

View Website

Eagle Family Foods Group (“Eagle”) is a leading domestic manufacturer of canned milk, popcorn and other salty snack products. Eagle operates in two stable and growing categories within canned milk with #1 branded market share in sweetened condensed milk and #2 branded share in evaporated milk, as well as #1 private label market share in each category. Additionally, Eagle manufactures ready-to-eat popcorn under the brand G.H. Cretors, as well as private label popcorn and other salty snack products for a diverse set of retail customers. G.H. Cretors is one of the fastest growing brands in the ready-to-eat popcorn category. Eagle’s products have a rich history with the 150-year heritage of the iconic Eagle canned milk brand and strong consumer awareness of the Cretors family name as the inventors of the popcorn machine.

Kelso Team

Phil Berney
Co-Chief Executive Officer
Matt Edgerton
Investment Partner
Bill Frayer
Vice President
Will Sherrill
Associate

Eagle Family Foods Group
Eagle Family Foods Group (“Eagle”) is a leading domestic manufacturer of canned milk, popcorn and other salty snack products. Eagle operates in two stable and growing categories within canned milk with #1 branded market share in sweetened condensed milk and #2 branded share in evaporated milk, as well as #1 private label market share in each category. Additionally, Eagle manufactures ready-to-eat popcorn under the brand G.H. Cretors, as well as private label popcorn and other salty snack products for a diverse set of retail customers. G.H. Cretors is one of the fastest growing brands in the ready-to-eat popcorn category. Eagle’s products have a rich history with the 150-year heritage of the iconic Eagle canned milk brand and strong consumer awareness of the Cretors family name as the inventors of the popcorn machine.
CaseStudy
Consumer
Consumer
Current
2015
3
Richfield, OH
Phil Berney
Co-Chief Executive Officer
Matt Edgerton
Investment Partner
Bill Frayer
Vice President
Will Sherrill
Associate
  • In December 2015, Kelso purchased the Eagle canned milk assets from The J.M. Smucker Company as part of a negotiated transaction. This acquisition established the foundation upon which to build a portfolio of food brands.
  • On August 1, 2016, Eagle successfully transitioned to its own ERP system, on time and on budget.
  • In August 2016, Eagle closed on the acquisition of Cornfields, Inc., a leading branded and private label manufacturer of popcorn and other salty snack products, which significantly increased the size of the business.

Partnership Aspects that Led to Sourcing of Transaction

Kelso was selected by Paul Wagstaff, a successful and seasoned food executive, to build a food platform together. Kelso’s unique characteristics were responsible for our selection by Paul as his Partner of Choice: our 35+ years of investing, the stability and longevity of our team and our focus on alignment of interest.

Partnered with a Best-in-Class Management Team with Demonstrated Success

CEO Paul Wagstaff is a very accomplished food executive and was formerly the President of J.M. Smucker’s U.S. Retail Consumer Foods division. He assembled a team of food industry veterans to help build the Eagle platform, and the team committed to invest substantial equity in the company.

Demonstrated Ability to Execute a Corporate Carve-out

Our ability to move quickly through an accelerated due diligence process and cause minimal business disruption to the seller was critical to being selected as the preferred buyer of the Eagle canned milk assets. Kelso’s commitment to smoothly transition key employees into the new Eagle Family Foods organization was also a differentiating factor.

Buyer of Choice for Family-Owned Business

Eight months after closing the initial investment, Kelso and management invested additional equity into Eagle to complete the acquisition of Cornfields, Inc. Kelso purchased Cornfields from the founding Cretors family in a negotiated transaction. The Eagle management team’s reputation for building brands was a key factor in the Cretors family’s decision to sell their company to Eagle.

When I set out on my own to build a new food platform after a long career at The J.M. Smucker Company, I was looking for more than just a financial partner. I was attracted to Kelso because of its emphasis on alignment of interest and its track record of partnership. In addition to the firm’s successful 35-year investing history, the longevity and stability of its investment team and the considerable amount of personal capital invested significantly differentiated them from other firms.
Paul Wagstaff, CEO of Eagle Family Foods Group
Consumer
December 2015
20151229
/investment-companies/eagle-family-foods-group

Earle M. Jorgensen

Services

Exited

March 1990

Distributor of metal bar and tubing products

Earle M. Jorgensen
NoCaseStudy
Services
Services
Exited
1990
87
Services
March 1990
19900319
/investment-companies/earle-m-jorgensen

Ellis Communications

Media

Santa Ana, CA

Current

April 2006

Owner and operator of TV station KDOC-TV in Orange County, CA

Kelso Team

Church Moore
Investment Partner
Matt Edgerton
Investment Partner
Frank Bynum
Senior Advisory Partner
Tom Wall
Senior Advisory Partner
Will Sherrill
Associate

Ellis Communications
NoCaseStudy
Media
Media
Current
2006
40
Santa Ana, CA
Church Moore
Investment Partner
Matt Edgerton
Investment Partner
Frank Bynum
Senior Advisory Partner
Tom Wall
Senior Advisory Partner
Will Sherrill
Associate
Media
April 2006
20060410
/investment-companies/ellis-communications

Ellis Communications

Media

Exited

November 1993

Broadcast television station and cable operator

Ellis Communications
NoCaseStudy
Media
Exited
1993
76
Media
November 1993
19931130
/investment-companies/ellis-communications-0

Endo Pharmaceuticals

Healthcare

Chadds Ford, PA

Exited

August 1997

Specialty pharmaceutical company primarily focused on pain management products

Endo Pharmaceuticals
NoCaseStudy
Healthcare
Healthcare
Exited
1997
62
Chadds Ford, PA
Healthcare
August 1997
19970826
/investment-companies/endo-pharmaceuticals

Endurance Business Media

Media

Tallahassee, FL

Exited

January 2004

Leading specialty publisher of residential real estate and rental property advertising publications in the U.S.

Endurance Business Media
NoCaseStudy
Media
Media
Exited
2004
51
Tallahassee, FL
Media
January 2004
20040114
/investment-companies/endurance-business-media

FairPoint Communications

Services

Charlotte, NC

Exited

July 1997

Leading provider of telecommunications services in rural communities

FairPoint Communications
NoCaseStudy
Services
Services
Exited
1997
64
Charlotte, NC
Services
July 1997
19970731
/investment-companies/fairpoint-communications

General Medical

Healthcare

Exited

August 1993

Distributor of medical supplies

General Medical
NoCaseStudy
Healthcare
Healthcare
Exited
1993
78
Healthcare
August 1993
19930831
/investment-companies/general-medical

Global Geophysical Services

Energy

Houston, TX

Exited

December 2006

Provider of land, transition zone and shallow marine seismic data acquisition and data processing to major oil and gas customers

Global Geophysical Services
NoCaseStudy
Energy
Energy
Exited
2006
37
Houston, TX
Energy
December 2006
20061204
/investment-companies/global-geophysical-services

Harbor Community Bank

Financial Services

Indiantown, FL

Current

September 2010

View Website

Community banking platform in Florida

Kelso Team

Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Alec Hufnagel
Vice President
Dan Slutsky
Associate

Harbor Community Bank
NoCaseStudy
Financial Services
Financial Services
Current
2010
23
Indiantown, FL
Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Alec Hufnagel
Vice President
Dan Slutsky
Associate
FinancialServices
September 2010
20100920
/investment-companies/harbor-community-bank

Harris Specialty Chemicals

Industrial

Jacksonville, FL

Exited

February 1994

Manufacturer and marketer of specialty chemicals and chemical materials for the construction industry

Harris Specialty Chemicals
NoCaseStudy
Industrial
Industrials
Exited
1994
75
Jacksonville, FL
Industrial
February 1994
19940215
/investment-companies/harris-specialty-chemicals

HCI Direct

Consumer

Bensalem, PA

Exited

October 1994

Engaged in the direct mail marketing, manufacturing, and distribution of women's sheer hosiery products in the U.S.

HCI Direct
NoCaseStudy
Consumer
Consumer
Exited
1994
73
Bensalem, PA
Consumer
October 1994
19941017
/investment-companies/hci-direct

Helios

Healthcare

Memphis, TN

Exited

October 2013

Helios is a leading provider of pharmacy benefit management (“PBM”) services, durable medical equipment, home health care, transportation, translation and Medicare compliance solutions for workers’ compensation insurance carriers and third-party administrators. Helios was formed at the time of Kelso’s investment through the merger of Progressive Solutions (“Progressive”) and PMSI, which were the #2 and #3 PBM providers in the workers’ compensation market at the time. The combination created the largest dedicated PBM serving the workers’ compensation industry.

Kelso Team

Frank Loverro
Co-Chief Executive Officer
Hank Mannix
Investment Partner
Church Moore
Investment Partner
Hugh McBride
Vice President

Helios
Helios is a leading provider of pharmacy benefit management (“PBM”) services, durable medical equipment, home health care, transportation, translation and Medicare compliance solutions for workers’ compensation insurance carriers and third-party administrators. Helios was formed at the time of Kelso’s investment through the merger of Progressive Solutions (“Progressive”) and PMSI, which were the #2 and #3 PBM providers in the workers’ compensation market at the time. The combination created the largest dedicated PBM serving the workers’ compensation industry.
CaseStudy
Healthcare
Healthcare
Exited
2013
9
Memphis, TN
Frank Loverro
Co-Chief Executive Officer
Hank Mannix
Investment Partner
Church Moore
Investment Partner
Hugh McBride
Vice President
  • The workers’ compensation PBM market continued to grow due to drug price inflation and moderate script growth post-investment.
  • Helios achieved the $35 million in run-rate cost savings initially forecasted.
  • In June 2014 based on the strength of the underlying business, Helios raised $210 million in incremental term loans, which allowed for a distribution to shareholders.
  • In October 2015, Helios was sold to OptumRX Inc.

Partnership Aspects that Led to Sourcing of Transaction

Kelso’s focus on the PBM sector and industry relationships allowed us to identify a strategic (Progressive) with which to partner in the acquisition of PMSI.  We proactively approached Progressive to be our partner, which gave the Kelso/Progressive combination a competitive edge in the auction process.  Our successful track record of partnering with corporates made us an attractive partner to both PMSI and Progressive. Existing management from both companies rolled over significant equity and led a combined management team.

Navigated a Complex Auction Process

Kelso was able to navigate a complex auction process and bring significant resources to bear to complete diligence on two companies within a condensed timeline and ultimately merge Progressive and PMSI.

Identified Meaningful Synergy Opportunity Post-Merger

In evaluating the combined business, Kelso and management were able to identify and underwrite $35 million of cost savings. These costs savings were fully implemented on a run-rate basis within two years of Kelso’s investment.

Capitalized on Opportunity for Strategic Sale

Timely, successful integration led by a combined Progressive/PMSI management team positioned the business for a sale to a strategic buyer. Kelso had identified this opportunity for a strategic exit in a rapidly consolidating industry as part of its investment thesis.

Healthcare Industry Experience Provided Key Insights

The Kelso Healthcare Services team had evaluated the PBM sector in depth prior to the Helios investment. Our conclusions regarding industry structure, barriers to entry, and differentiated services required in workers’ compensation PBM were core to our investment thesis.

Kelso’s deep healthcare experience and track record of corporate partnerships, teaming with management, and business integrations was critical in positioning Helios for a successful strategic sale in a relatively short period of time.
Emry Sisson, Co-CEO of Helios
Healthcare
October 2013
20131022
/investment-companies/helios

Hilite

Industrial

Cleveland, OH

Exited

June 1999

Designer and manufacturer of a diversified line of highly engineered components for the automotive industry

Hilite
NoCaseStudy
Industrial
Industrials
Exited
1999
61
Cleveland, OH
Industrial
June 1999
19990601
/investment-companies/hilite

Hillside Broadcasting

Media

Wilmington, NC

Exited

May 1995

Owned and operated the ABC television affiliate in Wilmington, NC

Hillside Broadcasting
NoCaseStudy
Media
Media
Exited
1995
72
Wilmington, NC
Media
May 1995
19950518
/investment-companies/hillside-broadcasting

Humphreys

Consumer

Chicago, IL

Exited

June 1995

Manufacturer and merchandiser of men's and boys' apparel, belts and personal leather goods

Humphreys
NoCaseStudy
Consumer
Consumer
Exited
1995
70
Chicago, IL
Consumer
June 1995
19950628
/investment-companies/humphreys

Hunt Marcellus

Energy

Dallas, TX

Current

November 2010

Joint venture between Kelso and the Hunt Oil Company formed specifically to acquire and develop natural gas assets in the Marcellus shale

Kelso Team

Frank Loverro
Co-Chief Executive Officer
Sandy Osborne
Investment Partner
George Matelich
Senior Advisory Partner
Alec Hufnagel
Vice President

Hunt Marcellus
NoCaseStudy
Energy
Energy
Current
2010
21
Dallas, TX
Frank Loverro
Co-Chief Executive Officer
Sandy Osborne
Investment Partner
George Matelich
Senior Advisory Partner
Alec Hufnagel
Vice President
Energy
November 2010
20101112
/investment-companies/hunt-marcellus

iGPS

Services

Orlando, FL

Exited

December 2007

Operator of plastic pallet rental service

iGPS
NoCaseStudy
Services
Services
Exited
2007
31
Orlando, FL
Services
December 2007
20071205
/investment-companies/igps

IHOP

Consumer

Exited

May 1987

Retail restaurant chain

IHOP
NoCaseStudy
Consumer
Consumer
Exited
1987
94
Consumer
May 1987
19870505
/investment-companies/ihop

KAR Auction Services

Services

Carmel, IN

Exited

April 2005

KAR Auction Services (“KAR”) is a leading provider of vehicle auction services in North America for sellers of used and salvage vehicles through numerous auction locations and multiple proprietary internet venues. Revenues are generated from auction fees from both vehicle buyers and sellers, as well as value-added ancillary services, including inspections, storage, transportation, reconditioning, salvage recovery, titling and floorplan financing.

Kelso Team

Michael Goldberg
Senior Advisory Partner
Frank Loverro
Co-Chief Executive Officer
Church Moore
Investment Partner
Dave Wahrhaftig
Senior Advisory Partner
Matt Edgerton
Investment Partner

KAR Auction Services
KAR Auction Services (“KAR”) is a leading provider of vehicle auction services in North America for sellers of used and salvage vehicles through numerous auction locations and multiple proprietary internet venues. Revenues are generated from auction fees from both vehicle buyers and sellers, as well as value-added ancillary services, including inspections, storage, transportation, reconditioning, salvage recovery, titling and floorplan financing.
CaseStudy
Services
Services
Exited
April 2005
46
Carmel, IN
Michael Goldberg
Senior Advisory Partner
Frank Loverro
Co-Chief Executive Officer
Church Moore
Investment Partner
Dave Wahrhaftig
Senior Advisory Partner
Matt Edgerton
Investment Partner
  • We successfully integrated IAAI and ADESA, achieving significant operational and financial benefits.
  • KAR completed numerous tuck-in acquisitions and the critical acquisition of Openlane, which enhanced KAR’s web-based auction and technology capabilities.
  • Despite a recession and significant decline in new vehicle sales and lease originations during Kelso’s ownership period, KAR grew revenue and EBITDA and successfully managed expenses and capital spending to generate free cash flow and pay down a substantial amount of debt.
  • In December 2009, Kelso took KAR public, in one of the first IPOs coming out of the Global Financial Crisis. To fully exit its investment, Kelso completed six secondary offerings between December 2012 and November 2013, with each successive offering price exceeding the previous sale’s offering price.

Partnership Aspects that Led to Sourcing of Transaction

KAR was formed in April 2007 by taking ADESA, a publicly-traded company, private and combining it with Insurance Auto Auctions (“IAAI”), an existing Kelso portfolio company. IAAI was an ideal platform to consolidate the auction industry by building out a national physical footprint and online business to compete with the only two other national competitors. Kelso installed Brian Clingen as CEO - Brian had previously been CFO of Universal Outdoor, a Kelso Fund V company. Kelso also hired Jim Hallett, the former CEO of ADESA, to run the used vehicle division.

Partnered with Former Kelso Manager to Create a Market Leading Auction Service Company

Brian Clingen was formerly the CFO of Kelso’s successful investment in Universal Outdoor. Brian also had experience in the automotive collision repair and insurance sectors. Kelso partnered with Brian in the going private transaction of IAAI in 2005, at which point Brian became Chairman of the Board. Kelso identified a substantial opportunity for value creation by consolidating the fragmented salvage vehicle auction sector, including by combining IAAI with the salvage operations of ADESA. Brian oversaw the go-private purchase of ADESA and the subsequent merger of IAAI and ADESA. After combining the two businesses, which resulted in substantial revenue and cost synergies, we ultimately took the combined business public in December of 2009.

Supported KAR’s Growth Through Operational Initiatives, Acquisitions and Greenfields

During our ownership, Kelso and management worked together to substantially transform the business through operational improvements, acquisitions and a further organic build-out of the combined company’s North American footprint. Significant opportunity for cost savings existed through combining IAAI with ADESA’s salvage auction businesses and implementing best practices at ADESA’s used vehicle locations.

I was thrilled to partner with Kelso again after our successful investment together in Universal Outdoor. Given their significant industry expertise and personal investment, Kelso is an ideal partner to management.
Brian Clingen, CEO of KAR Auction Services
Services
April 2005
20050401
/investment-companies/kar-auction-services

Kelso Overland

Industrial

Exited

October 1987

Less-than-truck load trucking company

Kelso Overland
NoCaseStudy
Industrial
Industrials
Exited
1987
93
Industrial
October 1987
19871014
/investment-companies/kelso-overland

Key Components

Industrial

Tarrytown, NY

Exited

May 2000

Designer and manufacturer of value-added, custom-engineered componentry

Key Components
NoCaseStudy
Industrial
Industrials
Exited
2000
56
Tarrytown, NY
Industrial
May 2000
20000522
/investment-companies/key-components

Kinder Morgan

Energy

Houston, TX

Exited

May 2007

Largest energy infrastructure company in North America specializing in owning and controlling oil and gas pipelines and terminals

Kinder Morgan
NoCaseStudy
Energy
Energy
Exited
2007
34
Houston, TX
Energy
May 2007
20070525
/investment-companies/kinder-morgan

King Broadcasting

Media

Exited

February 1992

Operator of broadcast TV and cable properties

King Broadcasting
NoCaseStudy
Media
Media
Exited
1992
81
Media
February 1992
19920224
/investment-companies/king-broadcasting

Landstar Systems

Industrial

Exited

March 1991

Less-than-truck load trucking company

Landstar Systems
NoCaseStudy
Industrial
Industrials
Exited
1991
84
Industrial
March 1991
19910328
/investment-companies/landstar-systems

Lebanon Valley Offset

Services

Exited

December 1986

Provider of offset printing for annual reports

Lebanon Valley Offset
NoCaseStudy
Services
Services
Exited
1986
96
Services
December 1986
19861223
/investment-companies/lebanon-valley-offset

Logan's Roadhouse

Consumer

Nashville, TN

Current

October 2010

View Website

Affordable, full service restaurant chain across the U.S.

Kelso Team

Phil Berney
Co-Chief Executive Officer
Steve Dutton
Investment Partner
Sandy Osborne
Investment Partner

Logan's Roadhouse
NoCaseStudy
Consumer
Consumer
Current
2010
22
Nashville, TN
Phil Berney
Co-Chief Executive Officer
Steve Dutton
Investment Partner
Sandy Osborne
Investment Partner
Consumer
October 2010
20101004
/investment-companies/logans-roadhouse

Masland Industries

Industrial

Exited

August 1991

Manufacturer of carpet and trunk liners for the auto industry

Masland Industries
NoCaseStudy
Industrial
Industrial
Exited
1991
83
Industrial
August 1991
19910802
/investment-companies/masland-industries

Merchants

Industrial

Exited

July 1990

Less-than-truck load trucking company

Merchants
NoCaseStudy
Industrial
Industrials
Exited
1990
85
Industrial
July 1990
19900731
/investment-companies/merchants

Mitchell Supreme Fuel

Services

Exited

June 1988

Distributor of fuel oil and natural gas in New Jersey

Mitchell Supreme Fuel
NoCaseStudy
Services
Services
Exited
1988
91
Services
June 1988
19880630
/investment-companies/mitchell-supreme-fuel

Mosler

Industrial

Exited

May 1990

Manufacturer and servicer of security products and systems

Mosler
NoCaseStudy
Industrial
Industrials
Exited
1986 and 1990
99
Industrial
May 1990
19900523
/investment-companies/mosler

Nivel

Industrial

Jacksonville, FL

Current

January 2012

View Website

Largest supplier of aftermarket parts and accessories to the golf car market

Kelso Team

Frank Bynum
Senior Advisory Partner
Dave Wahrhaftig
Senior Advisory Partner
Tom Wall
Senior Advisory Partner
Keith Castaldi
Vice President
Andrew Jankowski
Associate

Nivel
NoCaseStudy
Industrial
Industrials
Current
2012
16
Jacksonville, FL
Frank Bynum
Senior Advisory Partner
Dave Wahrhaftig
Senior Advisory Partner
Tom Wall
Senior Advisory Partner
Keith Castaldi
Vice President
Andrew Jankowski
Associate
Industrial
January 2012
20120113
/investment-companies/nivel

Nortek

Industrial

Providence, RI

Exited

January 2003

Diversified manufacturer of residential and commercial building products

Nortek
NoCaseStudy
Industrial
Industrials
Exited
2003
54
Providence, RI
Industrial
January 2003
20030109
/investment-companies/nortek

Oasis Outsourcing

Services

West Palm Beach, FL

Current

June 2017

View Website

Leading professional employer organization serving businesses in a diverse range of industries

Kelso Team

Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Keith Castaldi
Vice President
Will Sherrill
Associate

Oasis Outsourcing
Leading professional employer organization serving businesses in a diverse range of industries
NoCaseStudy
Services
Current
3
West Palm Beach, FL
Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Keith Castaldi
Vice President
Will Sherrill
Associate
Services
June 2017
20170630
/investment-companies/oasis-outsourcing

Oceana Therapeutics

Healthcare

Edison, NJ

Exited

June 2009

Specialty therapeutics organization formed to commercialize products, with a focus on colorectal, gastroenterology and urological disease

Oceana Therapeutics
NoCaseStudy
Healthcare
Healthcare
Exited
2009
28
Edison, NJ
Healthcare
June 2009
20090602
/investment-companies/oceana-therapeutics

Optigas

Energy

Denver, CO

Exited

May 2004

Gatherer, processor and marketer of natural gas in the Powder River Basin, East Texas and Louisiana

Optigas
NoCaseStudy
Energy
Energy
Exited
2004
50
Denver, CO
Energy
May 2004
20040525
/investment-companies/optigas

Overwatch Systems

Services

Morristown, NJ

Exited

October 2004

Leading provider of software-based multi-source intelligence analysis tools to US intelligence agencies

Overwatch Systems
NoCaseStudy
Services
Services
Exited
2004
49
Morristown, NJ
Services
October 2004
20041029
/investment-companies/overwatch-systems

Peebles

Consumer

South Hill, VA

Exited

June 1995

Operator of specialty department stores offering moderately priced merchandise to customers in small towns and communities

Peebles
NoCaseStudy
Consumer
Consumer
Exited
1995
71
South Hill, VA
Consumer
June 1995
19950608
/investment-companies/peebles

Physicians Endoscopy

Healthcare

Jamison, PA

Current

August 2016

View Website

Leading operator of gastroenterology-focused ambulatory surgery centers

Kelso Team

Frank Loverro
Co-Chief Executive Officer
Hank Mannix
Investment Partner
Church Moore
Investment Partner
Hugh McBride
Vice President
Dan Slutsky
Associate

Physicians Endoscopy
NoCaseStudy
Healthcare
Healthcare
Current
2016
1
Jamison, PA
Frank Loverro
Co-Chief Executive Officer
Hank Mannix
Investment Partner
Church Moore
Investment Partner
Hugh McBride
Vice President
Dan Slutsky
Associate
Healthcare
August 2016
20160818
/investment-companies/physicians-endoscopy

Poseidon Companies

Industrial

Athens, Greece

Current

June 2010

Owner of containerships

Kelso Team

Frank Loverro
Co-Chief Executive Officer
Chris Collins
Investment Partner
Hank Mannix
Investment Partner
Michael Goldberg
Senior Advisory Partner
Hugh McBride
Vice President

Poseidon Companies
NoCaseStudy
Industrial
Industrials
Current
2010
26
Athens, Greece
Frank Loverro
Co-Chief Executive Officer
Chris Collins
Investment Partner
Hank Mannix
Investment Partner
Michael Goldberg
Senior Advisory Partner
Hugh McBride
Vice President
Industrial
June 2010
20100623
/investment-companies/poseidon-companies

PowerTeam Services

Energy

Cary, NC

Current

December 2012

View Website

Provider of outsourced services for the maintenance, repair and installation of electric and natural gas infrastructure

Kelso Team

Phil Berney
Co-Chief Executive Officer
Hank Mannix
Investment Partner
Sandy Osborne
Investment Partner
Forrest Compton
Associate

PowerTeam Services
NoCaseStudy
Energy
Energy
Current
2012
12
Cary, NC
Phil Berney
Co-Chief Executive Officer
Hank Mannix
Investment Partner
Sandy Osborne
Investment Partner
Forrest Compton
Associate
Energy
December 2012
20121221
/investment-companies/powerteam-services

Premia Re

Financial Services

Bermuda

Current

January 2017

Reinsurance company focused on the property and casualty run-off market

Kelso Team

Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Bill Frayer
Vice President
Forrest Compton
Associate

Premia Re
Reinsurance company focused on the property and casualty run-off market
NoCaseStudy
Financial Services
Current
3
Bermuda
Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Bill Frayer
Vice President
Forrest Compton
Associate
FinancialServices
January 2017
20170106
/investment-companies/premia-re

PSAV

Services

Schaumburg, IL

Exited

February 2007

Leading provider of audio visual equipment and event technology support to the hotel, conference and event industry in North America and Europe

PSAV
NoCaseStudy
Services
Services
Exited
2007
36
Schaumburg, IL
Services
February 2007
20070228
/investment-companies/psav

Renfro

Consumer

Mount Airy, NC

Current

October 2006

View Website

Largest designer, marketer and manufacturer of socks sold in the U.S.

Kelso Team

Chris Collins
Investment Partner
Matt Edgerton
Investment Partner
Dave Wahrhaftig
Senior Advisory Partner
Tom Wall
Senior Advisory Partner
Dan Slutsky
Associate

Renfro
NoCaseStudy
Consumer
Consumer
Current
2006
38
Mount Airy, NC
Chris Collins
Investment Partner
Matt Edgerton
Investment Partner
Dave Wahrhaftig
Senior Advisory Partner
Tom Wall
Senior Advisory Partner
Dan Slutsky
Associate
Consumer
October 2006
20061005
/investment-companies/renfro

RHI Entertainment

Media

New York, NY

Exited

January 2006

Developer, producer and distributor of made-for-television movies and mini-series

RHI Entertainment
NoCaseStudy
Media
Media
Exited
2006
41
New York, NY
Media
January 2006
20060112
/investment-companies/rhi-entertainment

Risk Strategies Company

Financial Services

Boston, MA

Current

November 2015

View Website

Founded in 1997 by CEO Mike Christian, Risk Strategies Company (“RSC”) is a leading national insurance brokerage firm, focused on select specialty practices serving middle/upper-middle commercial clients and high net worth individuals. RSC has 35 offices across the U.S. and ~820 employees. RSC benefits from a differentiated business model focused largely on more complex specialty practices, including healthcare, professional liability, entertainment and fine arts.

Kelso Team

Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Forrest Compton
Associate

Risk Strategies Company
Founded in 1997 by CEO Mike Christian, Risk Strategies Company (“RSC”) is a leading national insurance brokerage firm, focused on select specialty practices serving middle/upper-middle commercial clients and high net worth individuals. RSC has 35 offices across the U.S. and ~820 employees. RSC benefits from a differentiated business model focused largely on more complex specialty practices, including healthcare, professional liability, entertainment and fine arts.
CaseStudy
Financial Services
Financial Services
Current
November 2015
4
Boston, MA
Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Forrest Compton
Associate
  • Since Kelso’s investment in November 2015, RSC has completed 11 strategic acquisitions at attractive purchase multiples. These acquisitions have been focused on three types of targets: new specialty practices, geographic expansion and tuck-ins to existing practices and offices.
  • Additionally, Kelso and management have made a number of platform investments to support the company’s increased scale and significant acquisition activity.

Partnership Aspects that Led to Sourcing of Transaction

Kelso identified insurance brokerage as a priority sector and worked with former Willis North America Chairman & CEO Vic Krauze and KSN member Pat McLaughlin to develop an investment thesis and pursue acquisitions in the sector. As part of this process, Kelso and its advisors identified RSC as a premier asset in the insurance brokerage industry and proactively pursued an acquisition of the company. Through this outreach, Kelso was able to establish itself as management’s Partner of Choice, allowing Kelso to preemptively complete diligence and deliver a complete bid outside of the broad auction process. Management and key employees rolled over 75% of their proceeds and own ~33% of the Company, evidencing their strong commitment to RSC and creating a meaningful alignment of interest with Kelso.

History of Success in Insurance Investing

Kelso's deep experience investing in the insurance sector, along with the experience of Mr. Krauze and Mr. McLaughlin, provided unique insights into the business and market.

Partnered with a Strong Management Team with a Demonstrated Track-Record of Success

RSC has a best-in-class management team with a proven track record of driving strong organic growth and executing on a disciplined, successful acquisition strategy. In searching for their next partner, management was seeking a capable investor whose experience and insights could help them move into the next phase of growth. Kelso was chosen as RSC’s Partner of Choice, and Kelso, Mr. Krauze and Mr. Pat McLaughlin, have been actively involved in acquisition sourcing, acquisition due diligence and strategic decisions as RSC continues to scale.

Kelso has been a tremendous partner for Risk Strategies. Both Kelso and its advisors have been instrumental in providing guidance and support as we seek to grow our business both organically and via strategic acquisitions. Their continued support will be critical as we execute on our long-term strategic plan and continue into our next chapter of growth.
Mike Christian, Founder and CEO of Risk Strategies Company
FinancialServices
November 2015
20151125
/investment-companies/risk-strategies-company

Sandler O'Neill + Partners

Financial Services

New York, NY

Current

December 2010

View Website

Full-service investment banking firm focused on the financial services sector

Kelso Team

Phil Berney
Co-Chief Executive Officer
Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Tom Wall
Senior Advisory Partner
Alec Hufnagel
Vice President
Will Sherrill
Associate

Sandler O'Neill + Partners
NoCaseStudy
Financial Services
Financial Services
Current
2010
19
New York, NY
Phil Berney
Co-Chief Executive Officer
Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Tom Wall
Senior Advisory Partner
Alec Hufnagel
Vice President
Will Sherrill
Associate
FinancialServices
December 2010
20101221
/investment-companies/sandler-oneill-partners

Scient Companies

Services

Atlanta, GA

Exited

April 1996

Internet services company which provided strategy consulting and comprehensive Internet-based solutions to Fortune 1000 companies

Scient Companies
NoCaseStudy
Services
Services
Exited
1996
68
Atlanta, GA
Services
April 1996
19960430
/investment-companies/scient-companies

Sentinel Data Centers

Services

New York, NY

Exited

January 2011

View Website

Developer and operator of highly fault tolerant data centers for internal data processing and disaster recovery purposes

Kelso Team

Hank Mannix
Investment Partner
Frank Bynum
Senior Advisory Partner
Tom Wall
Senior Advisory Partner
Alec Hufnagel
Vice President

Sentinel Data Centers
NoCaseStudy
Services
Services
Exited
2011
18
New York, NY
Hank Mannix
Investment Partner
Frank Bynum
Senior Advisory Partner
Tom Wall
Senior Advisory Partner
Alec Hufnagel
Vice President
Services
January 2011
20110105
/investment-companies/sentinel-data-centers

Sirius Computer Solutions

Services

San Antonio, TX

Current

October 2015

View Website

Leading provider of data center-focused technology integration services, including product provisioning, design and implementation

Kelso Team

Hank Mannix
Investment Partner
Frank Bynum
Senior Advisory Partner
Keith Castaldi
Vice President
Alec Hufnagel
Vice President
Dan Slutsky
Associate

Sirius Computer Solutions
NoCaseStudy
Services
Services
Current
2015
5
San Antonio, TX
Hank Mannix
Investment Partner
Frank Bynum
Senior Advisory Partner
Keith Castaldi
Vice President
Alec Hufnagel
Vice President
Dan Slutsky
Associate
Services
October 2015
20151029
/investment-companies/sirius-computer-solutions

SouthernCarlson

Industrial

Omaha, NE

Current

July 2016

View Website

Leading distributor of fastening and packaging products to construction and industrial end markets

Kelso Team

Matt Edgerton
Investment Partner
Sandy Osborne
Investment Partner
Keith Castaldi
Vice President

SouthernCarlson
NoCaseStudy
Industrial
Industrials
Current
2016
2
Omaha, NE
Matt Edgerton
Investment Partner
Sandy Osborne
Investment Partner
Keith Castaldi
Vice President
Industrial
July 2016
20160726
/investment-companies/southerncarlson

Spectramed

Healthcare

Exited

October 1986

Manufacturer of medical products

Spectramed
NoCaseStudy
Healthcare
Healthcare
Exited
1986
97
Healthcare
October 1986
19861010
/investment-companies/spectramed

Tallgrass

Energy

Leawood, KS

Current

September 2012

View Website

Tallgrass Energy is a growth-oriented midstream energy company operating across 10 states with transportation, storage, terminal and processing assets that serve some of the nation’s most prolific crude oil and natural gas basins.

Kelso Team

Frank Loverro
Co-Chief Executive Officer
Sandy Osborne
Investment Partner
Alec Hufnagel
Vice President

Tallgrass
Tallgrass Energy is a growth-oriented midstream energy company operating across 10 states with transportation, storage, terminal and processing assets that serve some of the nation’s most prolific crude oil and natural gas basins.
CaseStudy
Energy
Energy
Current
September 2012
13
Leawood, KS
Frank Loverro
Co-Chief Executive Officer
Sandy Osborne
Investment Partner
Alec Hufnagel
Vice President

 

  • Completed a $314mm MLP IPO just six months after closing the transaction, creating Tallgrass Energy Partners, LP (NYSE: “TEP”).
  • Completed a $1.4bn IPO of its general partner, Tallgrass Energy Partners GP, LP (NYSE: “TEGP”), two years after the IPO of TEP. 
  • To date, Tallgrass Development has successfully completed approximately $2.2bn of drop downs transactions to TEP, and has a substantial inventory of future drop downs remaining.  In addition, TEP has also completed over $500mm of third party acquisitions.
  • Successfully completed multiple development / repositioning projects across the asset base, including:
    • Development of Pony Express, creating an approximate 320,000 bbl/d crude oil pipeline serving multiple production basins in the Rockies
    • Transformation to bi-directional gas flows in and expansion of Zone 3 on Rockies Express Pipeline, repositioning the pipeline as a bi-directional header system capable of serving producers and end markets from the Rockies to the Utica Shale in Ohio
    • Development of Tallgrass Terminals, with over 3.5mm barrels of capacity across its systems

Partnership Aspects That Led Sourcing of Transaction

Kelso evaluated the assets with multiple strategic partners during Kinder Morgan’s FTC-mandated divestiture of certain pipelines and other midstream assets prior to working with Tallgrass.  We worked closely with our KSN members, many of whom had direct experience previously operating the assets, to identify the opportunity and develop an understanding of the value of the midstream asset portfolio.  As a result, we were able to give management confidence that Kelso was the right choice when securing a financial partner and negotiating the transaction.

History of Success in Midstream Sector

Our deep experience in the energy sector, specifically our strong track record in midstream, along with the experience of our KSN team, gave us the insights and confidence to pursue this very large acquisition, which required a differentiated perspective on the potential of its key assets. 

Substantial Upside To Be Unlocked Under New Ownership

Management developed a unique perspective on the assets which was not apparent to all bidders in the process, including a large development project (Pony Express Pipeline) and a large asset repositioning (Rockies Express Pipeline).  Through our independent due diligence, we ultimately developed a similar perspective with management on the substantial upside embedded in the asset portfolio.

Partnership with a Highly Experienced and Respected Management Team

Management, led by CEO David Dehaemers, had a strong track record of successfully operating midstream assets and creating significant value for investors.  Our energy experience and perspectives aligned well with those of management as they searched for a financial partner.

Energy
September 2012
20120907
/investment-companies/tallgrass

Tervita

Energy

Calgary, Alberta, Canada

Exited

November 2007

View Website

Industry leading provider of integrated and environmentally-responsible services to oil and gas companies in Canada and the U.S.

Kelso Team

Phil Berney
Co-Chief Executive Officer
Sandy Osborne
Investment Partner
George Matelich
Senior Advisory Partner

Tervita
NoCaseStudy
Energy
Energy
Exited
2007
32
Calgary, Alberta, Canada
Phil Berney
Co-Chief Executive Officer
Sandy Osborne
Investment Partner
George Matelich
Senior Advisory Partner
Energy
November 2007
20071106
/investment-companies/tervita

Texas Foundries

Industrial

Exited

January 1986

Operator of an iron and steel foundry

Texas Foundries
NoCaseStudy
Industrial
Industrials
Exited
1986
100
Industrial
January 1986
19860107
/investment-companies/texas-foundries

Third Point Re

Financial Services

Hamilton, Bermuda

Current

December 2011

View Website

Specialty property and casualty reinsurance company

Kelso Team

Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Bill Frayer
Vice President
Forrest Compton
Associate

Third Point Re
NoCaseStudy
Financial Services
Financial Services
Current
2011
17
Hamilton, Bermuda
Chris Collins
Investment Partner
Steve Dutton
Investment Partner
Bill Frayer
Vice President
Forrest Compton
Associate
FinancialServices
December 2011
20111222
/investment-companies/third-point-re

TransDigm

Industrial

Exited

September 1993

Manufacturer of products for the aerospace industry

TransDigm
NoCaseStudy
Industrial
Industrials
Exited
1993
77
Industrial
September 1993
19930930
/investment-companies/transdigm

Traxys Companies

Services

Strassen, Luxembourg

Exited

January 2006

Leading international physical metals and minerals marketing, distribution and trading business

Kelso Team

Hank Mannix
Investment Partner
Sandy Osborne
Investment Partner

Traxys Companies
NoCaseStudy
Services
Services
Exited
2006
42
Strassen, Luxembourg
Hank Mannix
Investment Partner
Sandy Osborne
Investment Partner
Services
January 2006
20060106
/investment-companies/traxys-companies

Truck-Lite

Industrial

Falconer, NY

Exited

December 2010

Truck-Lite is a leading manufacturer of signal lighting, forward lighting, wiring harnesses, mirrors, fuel filters and other products to the medium and heavy duty commercial vehicle, trailer and light vehicle industries. Kelso acquired a 49% ownership stake in Truck-Lite from the Penske Corporation and other investors in 2010. Truck-Lite operated as a standalone subsidiary of Penske Corp, benefitting from Penske Corp’s relationships with truck fleets and commercial and light vehicle OEMs. Truck-Lite maintains #1 or #2 market shares across all of its major product categories in the U.S.

Kelso Team

Frank Bynum
Senior Advisory Partner
Church Moore
Investment Partner
Matt Edgerton
Investment Partner
Hugh McBride
Vice President

Truck-Lite
Truck-Lite is a leading manufacturer of signal lighting, forward lighting, wiring harnesses, mirrors, fuel filters and other products to the medium and heavy duty commercial vehicle, trailer and light vehicle industries. Kelso acquired a 49% ownership stake in Truck-Lite from the Penske Corporation and other investors in 2010. Truck-Lite operated as a standalone subsidiary of Penske Corp, benefitting from Penske Corp’s relationships with truck fleets and commercial and light vehicle OEMs. Truck-Lite maintains #1 or #2 market shares across all of its major product categories in the U.S.
CaseStudy
Industrial
Industrials
Exited
December 2010
20
Falconer, NY
Frank Bynum
Senior Advisory Partner
Church Moore
Investment Partner
Matt Edgerton
Investment Partner
Hugh McBride
Vice President
  • Commercial vehicle and trailer production volumes met or exceeded industry expectations in 2011-12, thereby validating the market timing aspect of the Kelso investment thesis.
  • In 2012 based on the strength of the underlying business, Truck-Lite completed a $325 million debt refinancing, the proceeds of which were used to repay debt and fund a $100 million distribution to shareholders.
  • In February 2015, Truck-Lite acquired Rigid Industries, a leading manufacturer of LED lighting for the off-road and powersports industries.
  • In December 2015, Kelso and The Penske Corporation sold Truck-Lite to entities affiliated with Koch Equity Development and BDT Capital Partners.

Partnership Aspects that Led to Sourcing of Transaction

The Penske Corporation was seeking a partner to purchase a 49% interest in Truck-Lite.& Management and the Penske organization (including Roger Penske) selected Kelso as their partner due to our successful record of investing in the transportation industry, substantial experience with corporate partnerships and significant personal investment by the Kelso employees in our transactions. The Penske Corporation retained 51% ownership in the business. The Truck-Lite partnership was the first of two investments we have made with entities controlled by Roger Penske. Kelso continues to actively review new investment opportunities with the Penske organization.

Invested at an Attractive Entry Point in the Commercial Vehicle Cycle

Following the Global Financial Crisis, the average truck fleet age of 6.5 years in 2010 was the highest on record, with strong new build rates projected. Kelso observed one year of growth from the historically low build rate in 2009 and believed the industry was in the early stages of a significant recovery.

Invested Behind a Unique Business Model

Market leader in commercial vehicle lighting (#1 or #2 share across major product categories); low-cost producer in important, high-volume product lines; unique two-pronged selling strategy involving vehicle fleets and OEMs; ~11,000 points of distribution blanketing the U.S.

Supported Strong R&D Organization and New Product Pipeline

Kelso supported Truck-Lite’s strong R&D program with the launch of numerous new products during our ownership, including a greater focus on forward LED headlamps which were expected to significantly increase lighting product revenue in the coming years. In addition, we completed a significant acquisition which expanded Truck-Lite’s LED lighting franchise into an attractive new market.

Penske was searching for an experienced, like-minded investment partner that shared our vision of how to drive value through sustainable long-term growth. In Kelso, we found a partner with all of these attributes.
Roger Penske, CEO of Penske Corporation
Industrial
December 2010
20101203
/investment-companies/truck-lite

Tyler Refrigeration

Industrial

Exited

September 1991

Manufacturer of refrigerated display cases for the food industry

Tyler Refrigeration
NoCaseStudy
Industrial
Industrials
Exited
1991
82
Industrial
September 1991
19910930
/investment-companies/tyler-refrigeration

U.S. Electrical Services

Services

Middletown, CT

Exited

June 2006

Wholesale distributor of electrical products and related services

U.S. Electrical Services
NoCaseStudy
Services
Services
Exited
2006
39
Middletown, CT
Services
June 2006
20060607
/investment-companies/us-electrical-services

Unilab

Healthcare

Tarzana, CA

Exited

November 1999

Independent clinical laboratory testing company in California

Unilab
NoCaseStudy
Healthcare
Healthcare
Exited
1999
58
Tarzana, CA
Healthcare
November 1999
19991122
/investment-companies/unilab

Universal Outdoor

Media

Chicago, IL

Exited

April 1996

Outdoor advertising company in the U.S.

Universal Outdoor
NoCaseStudy
Media
Media
Exited
1996
69
Chicago, IL
Media
April 1996
19960405
/investment-companies/universal-outdoor

URS Logistics

Industrial

Exited

April 1993

Operator of refrigerated warehouses

URS Logistics
NoCaseStudy
Industrial
Industrials
Exited
1993
79
Industrial
April 1993
19930406
/investment-companies/urs-logistics

US LBM

Industrial

Buffalo Grove, IL

Current

August 2015

View Website

Leading building products distributor serving residential and commercial construction end markets

Kelso Team

Matt Edgerton
Investment Partner
Sandy Osborne
Investment Partner
Frank Bynum
Senior Advisory Partner
Will Sherrill
Associate

US LBM
NoCaseStudy
Industrial
Industrials
Current
2015
7
Buffalo Grove, IL
Matt Edgerton
Investment Partner
Sandy Osborne
Investment Partner
Frank Bynum
Senior Advisory Partner
Will Sherrill
Associate
Industrial
August 2015
20150820
/investment-companies/us-lbm

Venari Resources

Energy

Addison, TX

Current

April 2012

View Website

Exploration and production company focusing on oil and gas exploration in the deep water Gulf of Mexico

Kelso Team

Phil Berney
Co-Chief Executive Officer
George Matelich
Senior Advisory Partner
Alec Hufnagel
Vice President

Venari Resources
NoCaseStudy
Energy
Energy
Current
2012
14
Addison, TX
Phil Berney
Co-Chief Executive Officer
George Matelich
Senior Advisory Partner
Alec Hufnagel
Vice President
Energy
April 2012
20120427
/investment-companies/venari-resources

Waste Services

Services

Toronto, Ontario, Canada

Exited

May 2003

Multi-regional, integrated solid waste services company in Canada and the U.S.

Waste Services
NoCaseStudy
Services
Services
Exited
2003
52
Toronto, Ontario, Canada
Services
May 2003
20030506
/investment-companies/waste-services

Wickes Furniture

Consumer

Exited

May 1989

Operator of retail furniture outlets

Wickes Furniture
NoCaseStudy
Consumer
Consumer
Exited
1989
88
Consumer
May 1989
19890530
/investment-companies/wickes-furniture

Wilton Re

Financial Services

Wilton, CT

Exited

December 2009

Life reinsurance company

Wilton Re
NoCaseStudy
Financial Services
Financial Services
Exited
2009
27
Wilton, CT
FinancialServices
December 2009
20091204
/investment-companies/wilton-re