More than two years after buying Tank Holdings Corp., Leonard Green & Partners is getting some money back.
Tank Holdings is in the market with a $460 million term loan, according to Thomson Reuters Loan Pricing Corp. Proceeds from the deal will be used to refinance debt and fund a distribution to shareholders, LPC said.
Moody’s Investors Service, in a Feb. 26 note, said Tank is using part of the loan to pay an estimated $126 million distribution to its shareholders.
Tank is the combination of Norwesco and Snyder Industries, which merged in 2008. Norwesco, of St. Bonifacius, Minnesota, makes polyethylene storage tanks for the agricultural and industrial markets. Snyder, of Lincoln, Nebraska, produces custom-engineered bulk containers. Tank produced $277 million in 2014 revenue, Moody’s said.
In 2012, Leonard Green acquired Tank in a deal valued at $830 million. GE Antares provided a $405 million loan to support Green’s acquisition of Tank Holdings.
The investment in Tank came from Green Equity Investors V LP, an FTC notice announcing the 2012 sale said. Fund V, which closed in 2007 with $5.3 billion in commitments, is producing a 19.2 percent net IRR and a 1.8x investment multiple as of June 30, performance data from the California Public Employees’ Retirement System said.
Executives for Leonard Green declined comment. Tank Holdings couldn’t be reached for comment.
Photo courtesy of Snyder Industries