OMERS Private Equity has agreed to partner with management in the acquisition of The Kenan Advantage Group Inc, a U.S. provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets. The deal’s financial terms were not published. The sellers are U.S. private equity firms Goldman Sachs Capital Partners and Centerbridge Partners, which bought the North Canton, Ohio-based company from Littlejohn & Co in 2010. OMERS said it will support Kenan’s continued organic and acquisition-led growth. The deal, which is expected to close in the third quarter, closely follows OMERS’ buy of U.K.-based Environmental Resources Management.
OMERS Private Equity Acquires Kenan Advantage
NEW YORK, NEW YORK–(Marketwired – June 18, 2015) – OMERS Private Equity (“OPE”), the private equity arm of the OMERS pension plan, together with management, has signed a definitive agreement to acquire The Kenan Advantage Group, Inc. (“KAG” or the “Company”) from Goldman Sachs Capital Partners and Centerbridge Partners.
Founded in 1991 and headquartered in North Canton, Ohio, KAG is North America’s largest provider of liquid bulk transportation services to the fuels, chemicals, liquid foods and merchant gas markets. The Company operates an extensive North American footprint and is able to service the critical, “last-mile” link in the distribution networks of over 2,000 customers at the regional, national and cross-border level. Since its founding, KAG has consistently delivered a strong track record of growth, achieved organically and through acquisitions.
Dennis Nash, CEO of KAG, said, “We are excited about our new partnership with OPE. Their culture, large capital base and international presence make them an ideal partner for us as we continue to be the transportation provider of choice. We will continue to revolutionize transportation and logistics for the liquid bulk industry and provide uncompromising, reliable service to clients seeking total service excellence for their logistical needs.” Carl Young, CFO of KAG, added, “We are pleased with where KAG is today and the opportunities we have going forward. Our partnership with OPE and their long-term investment approach position us to capitalize on our platform and embark on the next phase of growth.”
“We look forward to partnering with Dennis, Carl and the entire management team to support the Company’s next phase of growth,” said William J. Coughlin, Managing Director at OPE. “We believe that KAG will continue to distinguish itself as the market leader in the highly fragmented liquid bulk transportation industry in the years ahead.”
“The investment in KAG is consistent with OPE’s strategy of acquiring industry leading companies with world class management. The Company has steadily grown to become the most sophisticated platform of scale in the stable and growing liquid bulk transit space. Unlike traditional PE firms, OPE takes a longer view, and KAG matches up well with our strategy of choosing assets that have excellent long term fundamentals. KAG is a very strong addition to our growing industrials portfolio,” says Michael Graham, OPE Senior Managing Director and Head of North America.
OPE will support management to continue its impressive track record of profitable growth both organically and through strategic acquisitions.
This transaction is expected to close in the third quarter of 2015.
Weil Gotshal & Manges LLP acted as legal counsel for OMERS Private Equity.
About Kenan Advantage Group
KAG is North America’s largest tank truck transporter and logistics provider, delivering fuel, chemicals, industrial gases, and food-grade products. The Company is the only independent fuels delivery carrier with a nationwide network with the ability to deliver to all 48 states of the continental United States and Mexico. In addition, KAG operates locations in Canada across Alberta, British Columbia, Ontario, Saskatchewan and the Northwest Territories. To learn more about KAG’s transportation and logistics service offerings, footprint, and asset base visit www.thekag.com.
About OMERS Private Markets and OMERS Private Equity Inc.
OMERS Private Markets (OMERS Private Equity and Borealis Infrastructure) manages CAD$19.4 billion in equity capital on behalf of the OMERS pension plan. OPM invests globally in private equity and infrastructure assets, with the goal of generating superior, risk-adjusted returns to help deliver secure and sustainable pensions to OMERS members. OPM has offices in Toronto, New York, London and Sydney. For further information visit: www.omerspe.com or www.omersprivatemarkets.com.
OMERS is one of Canada’s largest pension funds with over CAD$72 billion in net assets and an AAA credit rating. It provides first-class pension administration and innovative products and services to over 450,000 members. Approximately one in every 20 employees working in the province of Ontario is an OMERS member. Through the OMERS Worldwide brand, our team of investment professionals uses a direct, active management investment strategy to invest in public and private market assets, including publicly-traded equities, fixed-income, infrastructure, private equity and real estate.
Photo courtesy of Kenan Advantage Group