Private equity firm Kinderhook Industries is sizing up Gulf Tanks Holdings, which does business as Tank and Pump, after acquiring the Baytown, Texas-based company from WillScot Mobile Mini Holdings for approximately $323 million. dollars.
The transaction, which is subject to customary closing conditions and regulatory approval, is expected to close in the third quarter, Kinderhook said.
Tank and Pump provides environmental solutions for liquid and solid industrial waste containment to a diverse set of end markets with a fleet of over 16,000 specialist rental assets and a network of 24 branches.
“The Tank and Pump team is excited to launch an aggressive growth strategy for our business with the support of Kinderhook,” said Eric John, new CEO of Tank and Pump. “We will stay true to our roots of providing reliable, best-in-class environmental solutions to our customers while expanding the breadth and depth of those solutions.
“Our expansion will be fueled by investments in the fleet, new locations and the completion of complementary acquisitions.”
The acquisition is Kinderhook’s 79th environmental/business services transaction and 17th public company.
Tank and Pump’s current management team will remain intact, Kinderhook said. John previously served as senior vice president of the Tank and Pump segment.
“We look forward to partnering with Eric and the Tank and Pump team to grow the business while continuing to provide best in class service to its customers,” said Rob Michalik, General Manager of Kinderhook Industries. “We will actively deploy capital into organic growth to better meet the ongoing needs of the company’s customers and will also seek to grow through acquisitions.
“It was a pleasure working with Brad Soultz and Tim Boswell to execute this transaction, and we look forward to future transaction and partnership opportunities with WillScot.”
WillScot Mobile Mini, a leader in flexible workspace and portable storage solutions, said it will use proceeds from the sale to support ongoing reinvestment in its core modular operating and storage segments.
“Consistent with our capital allocation framework, we plan to redeploy the proceeds of this transaction to compound growth and returns in our core segments through organic reinvestment, pursuing add-on acquisitions, buying out our common equity and deleveraging within our target range,” Soultz said.
“As our recent second quarter results show, the opportunities to reinvest in our core modular and storage segments are abundant and attractive, and we can seize them even more effectively by further focusing our human and financial capital.”