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Kinderhook carves out Tank and Pump for $323M

Sept. 2, 2022
Baytown, Texas-based environmental solutions company boasts 16,000 specialized rental assets for storing and transporting liquid and solid industrial waste

Private equity firm Kinderhook Industries is carving out Gulf Tanks Holdings, which does business as Tank and Pump, after acquiring the Baytown, Texas-based business from WillScot Mobile Mini Holdings for approximately $323 million.

The transaction, which is subject to customary closing conditions and regulatory approval, is expected to close in the third quarter, Kinderhook said.

Tank and Pump provides environmental solutions for the containment of liquid and solid industrial waste across a diverse set of end markets with a fleet of more than 16,000 specialized rental assets and a network of 24 branches.

“The Tank and Pump team is excited to launch an aggressive growth strategy for our business with Kinderhook’s support,” said Eric John, new CEO of Tank and Pump. “We will remain true to our roots of providing dependable, best-in-class environmental solutions for our customers while also expanding the breadth and depth of those solutions.

“Our expansion will be fueled by investments in the fleet, new locations, and completing add-on acquisitions.”

The acquisition is Kinderhook’s 79th environmental/business services transaction and 17th public-company carve out.

Tank and Pump’s current leadership team will remain intact, Kinderhook said. John previously served as senior vice president of the Tank and Pump segment.

“We are eager to partner with Eric and the Tank and Pump team to grow the company while continuing to provide best-in-class service to its customers,” said Rob Michalik, managing director of Kinderhook Industries. “We will actively deploy capital in organic growth to better service the ongoing needs of the company’s customers and also look to grow through acquisition.

“It was a pleasure to work with Brad Soultz and Tim Boswell to execute this transaction, and we look forward to future opportunities to transact and partner with WillScot.”

WillScot Mobile Mini, a leader in flexible workspace and portable storage solutions, said it will use proceeds from the sale to support ongoing reinvestment in its core Modular and Storage operating segments.

“Consistent with our capital allocation framework, we expect to redeploy the proceeds from this transaction to compound growth and returns in our core segments through organic reinvestment, continued tuck-in acquisitions, repurchases of our common stock, and de-leveraging within our target range,” Soultz said.

“As most recently evident in our second-quarter earnings, the opportunities to reinvest in our core Modular and Storage segments are abundant and attractive, and we can pursue them even more effectively by further concentrating our human and financial capital.”