Single-asset continuation fund to support
continued growth for SPATCO Energy Solutions and bring Kian’s
assets under management to over $1 billion
Kian Capital Partners (“Kian”), a lower-middle-market-focused
private investment firm, is proud to announce the closing of a
single-asset continuation fund to reinvest in SPATCO Energy
Solutions, expanding Kian’s assets under management to just over $1
billion. The transaction provides liquidity to existing investors
seeking to monetize performance to date while providing Apogem and
other new continuation fund investors the opportunity to
invest.
SPATCO is a leading fueling infrastructure services provider in
the Southeast, Mid-Atlantic and Southwest, offering
forward-thinking, turnkey solutions for America’s petroleum and
EV-charging infrastructure operators. SPATCO was founded in 1935
and serves full-service convenience stores, fueling centers,
electric vehicle charging locations, local and state municipalities
and commercial fleet operators with a broad portfolio of
services.
Kian originally invested in SPATCO in 2015 with the firm’s
inaugural fund, Kian Mezzanine Partners I, L.P., providing
subordinated debt and minority equity to support smaller add-on
acquisitions. In September 2020, Kian acquired a controlling
interest in SPATCO via an investment from Kian Mezzanine Partners
II, L.P. After completing the recapitalization, John Force was
promoted to CEO after working for SPATCO for over 20 years. Under
his leadership, the platform has evolved into one of the nation’s
leading fueling infrastructure solutions providers, with a
people-centric and customer-focused foundation and a skilled field
technician base regarded widely for its capabilities, fast response
times and leading first-time fix rates. Since 2020, EBITDA has
quadrupled as a result of eight strategic add-on acquisitions and
several new branch openings. SPATCO has 33 offices spanning 16
states and approximately 1,000 team members as of June 30th,
2024.
“The completion of this continuation vehicle is a significant
milestone not only for the future of SPATCO but also for our firm,
as we now have over $1 billion in capital under management,” said
Kian Co-Founder and Managing Partner Kevin McCarthy. “We are
humbled and excited to extend our firm’s relationship with Apogem
and welcome new investor relationships with blue-chip firms,
including Siguler Guff and RCP Advisors. We believe there is
significant opportunity for continued growth and look forward to
continuing to partner with John Force and the incredible team at
SPATCO.”
“As we enter this next chapter, we plan to continue executing on
the robust growth plan we have developed, including rapidly
expanding SPATCO’s team of technicians and continuing to pursue
M&A in a highly fragmented and growing fueling infrastructure
market,” said Kian Partner Jordan Lee. “We are confident that there
is a long runway ahead of SPATCO, and our shared vision for the
future of the platform will further solidify SPATCO as the
industry’s service partner of choice.”
“With this additional investment, we are excited to build on our
track record of success by adding density in existing markets and
planting flags in new territories, as well as expand our scope of
services for our customers,” continued SPATCO CEO John Force, who
will retain ownership in the business alongside the rest of
SPATCO’s leadership team. “Additionally, SPATCO will continue to
expand and support its customers in the buildout and maintenance of
the nation’s EV infrastructure, which is absolutely essential as
technology continues to propel innovation in the energy
infrastructure and equipment services sector.”
“We are thrilled to partner with the team at Kian to drive the
platform's continued growth and expansion. Kian has done an
outstanding job executing its M&A and organic growth strategy
thus far, as SPACTO has grown to become a high-performing business
and a leader within their market,” added Apogem Capital Managing
Director Mike Zeleniuch.
Campbell Lutyens acted as exclusive financial advisor to Kian
and SPATCO. DLA Piper and Robinson Bradshaw acted as Kian’s legal
advisors. Bass Berry Simms served as legal counsel for Apogem
Capital.
In conjunction with the closing of the continuation fund, SPATCO
completed a refinancing of its debt facilities raising over $200
million of new debt capital to support the company’s growth.
Barings and NXT Capital provided new senior financing, and New
Canaan Funding and Wells Fargo Strategic Capital provided mezzanine
financing.
About SPATCO Energy Solutions Headquartered in Charlotte,
North Carolina, with 33 offices and 1,000 team members, SPATCO is a
leading sales, service and maintenance, installation, and
compliance provider to fueling infrastructure providers across the
United States. The company is one of Dover Fueling Solutions’
largest distributors of Wayne products and offers complete
environmental compliance, assessment and remediation services. With
almost 90 years of experience, SPATCO employs a differentiated
service-oriented model on behalf of a diverse and longstanding
customer base that includes retail, industrial, commercial fleet
and electric vehicle charging and fueling companies. To learn more,
visit www.spatco.com.
About Kian Capital Partners At Kian, we forge
partnerships to ignite growth and build enduring value. Our goal is
to provide flexible financial resources and additional operational
horsepower to scale lower-middle-market businesses, realize
aspirations and deliver long-term investment returns through
genuine partnership. Proud to be recognized on Inc.’s
Founder-Friendly Investors list for three consecutive years, Kian
is a private investment firm with $1 billion of capital under
management and a focus on four core industry sectors: consumer,
services, value-added distribution and specialty manufacturing. Our
team of seasoned investors has over 100 years of collective
experience providing transformational capital solutions and
board-level strategic and operational guidance to founder/owner
operated businesses. To learn more, visit www.kiancapital.com.
About Apogem Capital Apogem Capital, a New York Life
Investments Company offers investors access to the middle market’s
growth engine through investments in established private companies
and funds. With more than $42 billion in assets under management as
of March 31, 2024, the firm manages a streamlined suite of capital
solutions, including direct lending, junior debt, primary fund
investments, secondary investments, equity co-investments, GP
stakes, and private real assets. Apogem Capital is a wholly owned
subsidiary of New York Life Insurance Company (“NYLIC”), through
New York Life Investment Management Holdings, LLC (“NYLIM”). For
more information about Apogem, please visit apogemcapital.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725088576/en/
Business Inquiries David Duke Partner, Business
Development dduke@kiancapital.com T 470.823.3008
Media Inquiries Allie Gamble MiddleM Creative (on behalf
of Kian Capital) allie@middlemcreative.com T 704.280.1432