LLCP Acquires Industrial Services Firm The Colt Group

Levine Leichtman Capital Partners (LLCP) has strategically expanded its industrial services portfolio by acquiring The Colt Group, a prominent provider of specialized maintenance and repair solutions for critical infrastructure. This move marks the fifth platform investment for LLCP's latest fund, Levine Leichtman Capital Partners VII, L.P., underscoring the firm's sustained focus on sectors vital to operational continuity.

Headquartered in Pasadena, Texas, The Colt Group, established in 1981, offers a suite of essential services including live leak repair, hot tapping, and field machining. These capabilities are crucial for industrial and municipal clients seeking to prevent costly unplanned shutdowns and extend the lifespan of their assets. The company's extensive service network, coupled with its engineering and manufacturing prowess, has cemented its reputation as a reliable partner in asset integrity management.

Matthew Rich, a Partner at LLCP, expressed enthusiasm for the collaboration, highlighting Colt's market-leading position driven by technical expertise and customer service. "The Company’s services help customers avoid costly downtime and extend the life of critical infrastructure assets, making Colt a trusted partner across a highly diverse customer base," Rich stated. LLCP intends to invest in enhancing Colt's personnel, capabilities, and geographic reach to further solidify its leadership.

The existing leadership team at The Colt Group, led by CEO Jason Box, will continue to guide the company's operations and will retain a significant equity stake. "We are delighted to partner with LLCP as we enter our next chapter," said Mr. Box. "LLCP shares our commitment to customer service, safety and operational excellence, while bringing significant experience helping businesses like ours accelerate growth." The partnership aims to leverage LLCP's industry knowledge and resources to fuel expansion.

This acquisition aligns with broader market trends favoring specialized service providers that enhance operational efficiency and asset longevity in sectors like energy, manufacturing, and utilities. The industrial services market, estimated to be worth billions globally, continues to see robust demand driven by aging infrastructure and the imperative for reliable operations. LLCP's prior investments in similar areas, including USA Water and In-Place Machining, demonstrate a consistent strategy of backing essential service providers.

LLCP, a global private equity firm with a 42-year history, employs a distinctive Structured Private Equity approach, integrating debt and equity capital. This strategy allows for flexible and tailored growth financing for management teams. With approximately $15.0 billion in assets under management and a global presence across multiple offices, LLCP has a proven track record in sectors such as Business Services, Franchising, Education, and Engineered Products.

Advisory services for the transaction were provided by Harris Williams and Kirkland & Ellis LLP for LLCP, while Houlihan Lokey, Inc. and Willkie Farr & Gallagher LLP advised The Colt Group.