Canadian mid-market private equity firm CAI Capital Partners has agreed to sell its majority interest in GeoStabilization International LLC (GSI), a Grand Junction, Colorado-based provider of geotechnical maintenance services.
No financial terms were released for the deal, which is expected to close this year.
The buyer is U.S. private equity firm Kohlberg Kravis Roberts & Co (KKR).
Founded in 2002, GSI specializes in landslide repair and rockfall mitigation services in North America, developing and implementing solutions that protect from and remediate geohazards in order to restore the safe operability of impacted infrastructure.
CAI acquired its stake in 2012 and supported initiatives to build upon and enhance the company’s market position.
Led by President and CEO Colby Barrett, GSI also has an office in Vancouver.
CAI Capital Partners Enters into Agreement to Sell GeoStabilization International to KKR
Commerce City, CO and Vancouver, BC — November 19, 2018 — CAI Capital Partners (“CAI”) is pleased to announce that it has entered into an agreement to sell its majority interest in GeoStabilization International (“GSI” or the “Company”) to an affiliate of KKR & Co. Inc. (“KKR”). Terms of the transaction were not disclosed.
GSI is a leading provider of landslide repair and rockfall mitigation services in the United States and Canada, developing and implementing innovative solutions that protect from and remediate geohazards in order to restore the safe operability of impacted infrastructure. The Company has established a strong reputation for its ability to serve as a partner of choice due to its national scale, as well as its integrated design, engineering, and execution capabilities. GSI focuses solely on its core mission of geohazard mitigation, with a passion across all its teammates for developing and installing proprietary solutions that protect people and infrastructure from the dangers of geohazards. Due to GSI’s unique focus, the Company is an innovation leader in its approach of using integrated teams of geologists, geotechnical engineers, and remediation technicians who work hand in hand leveraging proprietary and patented GSI technologies including their Soil Nail Launcher, Biowall System, ScourMicropiles, and SuperNails.
Peter Restler, CAI Founding Partner, said, “GSI’s success over the past six years is the result of the Company’s relentless drive to provide the best possible value to their clients and ensuring the safety of our most critical infrastructure. GSI has been an outstanding investment for CAI, and we are grateful to the Company’s management and employees for their dedication and effort during our partnership.”
Curtis Johansson, Partner with CAI, added “It has been a sincere pleasure working with the GSI team over the last six years. The success of our investment in GSI exemplifies CAI’s strategy of partnering with founder-led lower middle market companies and working together to achieve a shared vision. CAI is excited to follow GSI’s progress as the team embarks on this new partnership with KKR.”
Colby Barrett, GSI President and CEO, said, “We would like to thank CAI for the support they have provided, which has helped us to build this current foundation upon which we will continue growing with our new partner, KKR. The CAI team were true partners for us during a period of exceptional growth.”
CAI acquired its interest in GSI in December 2012. Throughout its hold period, CAI supported management as they invested in people, technology and safety infrastructure to further build upon and enhance the Company’s leading market position within the geotechnical services space.
The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close by year-end 2018. GSI and CAI were advised by William Blair and Perkins Coie LLP. KKR was advised in the transaction by Kirkland & Ellis LLP.
About GeoStabilization International
Founded in 2002, GSI is a leading provider of complex geotechnical maintenance services for critical infrastructure across the U.S. and Canada. The company develops and implements innovative solutions that protect from dangers associated with geohazards that have either caused, or have the potential to cause, catastrophic infrastructure failures and significant economic disruption. For more information, please visit www.geostabilization.com.
About CAI Capital Partners
CAI Capital Partners is a Vancouver-based private equity firm focused on partnering with and growing founder-owned businesses in the Canadian lower middle market. Over three decades, CAI has invested C$1.4 billion into companies across North America. For additional information, please visit www.caifunds.com.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
For further information please contact:
Curtis Johansson, Partner
Ashton Herriott, Director