KLH-backed Federal Resources gets refinanced

KLH Capital portfolio company Federal Resources Supply Company has been recapitalized. Alaris Royalty Corp participated in the transaction. No financial terms were disclosed. BlackArch Partners served as financial advisor to Federal Resources. Based in Stevensville, Maryland, Federal Resources is a provider of products and solutions for the defense, first responder, homeland security and maritime markets.


Charlotte, NC (PRWEB) July 01, 2015

BlackArch Partners (“BlackArch”) is pleased to announce the recapitalization of Federal Resources Supply Company (“Federal Resources” or the “Company”), a portfolio company of KLH Capital (“KLH”) in partnership with Alaris Royalty Corp. (“Alaris”). Federal Resources, based in Stevensville, MD, is a leading value-added provider of mission critical chemical, biological, radiological, nuclear and explosive (“CBRNE”) detection and protective products and solutions for defense, first responder, homeland security and maritime end users. The recapitalization and partnership with Alaris will enable the Company to continue its significant growth trajectory and enhance its ability to provide integrated CBRNE solutions for U.S. warfighters and first responders.

BlackArch was retained by Federal Resources to serve as the Company’s exclusive financial advisor. The Federal Resources transaction builds upon BlackArch’s experience and significant momentum in the aerospace, defense & government services (“ADGS”) sector representing market-leading businesses.

Robert McWilliams, Federal Resources’ Chief Executive Officer, commented, “BlackArch has been a great asset and support element throughout the process of evaluating potential domestic and international financial partners who are able to support the objectives of our business and allow us to continue to grow in a complex legal and regulatory environment. They are extremely dedicated and we will continue to work closely with BlackArch during our next phase of growth.”

About Federal Resources
Federal Resources is a Maryland based leading value-added provider of mission-critical products and solutions to defense, first responder, homeland security and maritime end users. The Company is a leading provider of CBRNE equipment, tactical gear, tools and maritime solutions including Thermo Fisher Scientific, Smiths Detection, Blauer and Hellan Strainer products. Federal Resources was founded in 1986 and employs 150 people.

About KLH Capital
KLH Capital is a fully capitalized SBIC-licensed private equity firm which currently manages $165 million in capital across two funds. During the Company’s nearly 30-year business tenure, KLH Capital has successfully completed more than 130 transactions, including recapitalizations, management buy-outs and buy-ins, family successions and retirement transitions and corporate divestitures.

About Alaris Royalty Corp.
Alaris provides capital to private companies in a way that maximizes valuations and tax efficiency, and allows existing owners or management to maintain control of their common equity ownership while also not diluting their position. The structure is designed for entrepreneurs who wish to raise capital for a partial exit, generational transfer, recapitalization, acquisitions, management buyouts or growth and who want to maintain control of their companies. Alaris has invested over $700 million to date and currently has investments in 14 Private Company Partners. Founded in 2004, Alaris is located in Calgary, Alberta, Canada.

About BlackArch Partners
BlackArch Partners is a leading middle-market investment bank offering a full spectrum of advisory services to financial sponsors, private companies and diversified corporations. BlackArch addresses the needs of owner-operators, founders and shareholders of private companies with specialized services that include M&A advisory, strategic advisory and private capital solutions. Headquartered in Charlotte, NC, BlackArch specializes in a number of key industries, including aerospace, defense & government services. BlackArch professionals have closed over 300 transactions in 16 countries on four continents. Please visit our website, blackarchpartners.com, for more details.