KRG Capital Partners Completes Investment in Tri-County Petroleum Inc.
Acquisition represents 9th Platform for KRG’s Fund III
DENVER, CO (January 8, 2008)—KRG Capital Partners (KRG), a Denver-based private equity firm, announced that it has completed an investment in Tri-County Petroleum Inc., (Tri-County or TCP) a leading specialty distributor of industrial and commercial lubricants. KRG completed the acquisition of TCP by bridging the entire transaction with KRG’s fund capital and will be completing the debt financing of the Company post closing. TCP is the 9th platform company for KRG’s $715 million Fund III.
“We are very excited to be partnering with the management team at Tri-County to support the growth of this great company” noted Ted Nark, Managing Director, of KRG Capital. “We are very impressed with Tri-County’s focus on customer service and the longstanding partnerships the Company has established with its major suppliers.”
Stew Fisher, Managing Director of KRG Capital added, “We believe Tri-County’s strength results from the strong commitment of its people. Under the leadership of Robert Black and Gregory Black, the Company has compiled sales, operations, delivery and back office personnel committed to providing its customers best-in-class service every day.”
KRG’s investment in Tri-County will support the continued organic and acquisitive growth of the Company. Tri-County and KRG believe that the markets in which the Company operates will continue to consolidate and that Tri-County has the opportunity to be the partner of choice for other family owned lubricant distributors looking to participate in the development of a multi-regional platform with the highest standards of customer service. Through investments in Tri-County’s existing operation and selective acquisitions, KRG and Tri-County expect to continue increasing the Company’s value proposition to its customers, suppliers, and personnel. Tri-County’s existing owners will continue to be shareholders of the Company. TCP will continue to be managed by Robert Black (President) and Gregory Black (General Manager).
About Tri-County: Tri-County Petroleum, headquartered in Riddlesburg, Pennsylvania, is the largest commercial and industrial lubricant distributor in the Mid-Atlantic region, serving a diverse set of over 2,500 customers engaged in diverse industries including OEM, off-highway construction, food processing, surface mining and metal working industries. TCP provides its customers an extensive selection of bulk and “mini-bulk” lubricant products complemented by a full suite of packaged lubricant products. The Company’s services include customized on-site tank systems, filtration, expert oil analysis, application engineering expertise, and coolant program expertise.
About KRG: Founded in 1996, KRG is a Denver-based private equity firm with nearly $4 billion of cumulative capital either deployed or available for future investment, which includes approximately $600 million deployed since inception on behalf of equity co-investors. KRG specializes in acquiring and recapitalizing unique and profitable middle-market companies. The firm seeks investment opportunities for its partners where KRG can work in concert with owners and operating managers who are committed to expanding their companies and becoming industry leaders. The result is a partnership that focuses on creating a significantly larger enterprise through a combination of internal growth and complementary add-on acquisitions. Since inception, KRG has invested in 30 platform companies and has completed 91 add-on acquisitions for those platforms. More information on KRG is available online at www.krgcapital.com.