#United States #Levine Leichtman #Los Angeles #Private Equity #Colt Group

Levine Leichtman Capital Partners Acquires The Colt Group

In an exciting move for the private equity landscape, Levine Leichtman Capital Partners (LLCP) has officially announced the acquisition of the Colt Group, a key player in specialty industrial services. Based in Los Angeles, LLCP partnered with Colt’s management team to secure this acquisition, though the financial specifics of the deal remain undisclosed.

Founded in 1981 and headquartered in Pasadena, Texas, Colt has established itself as a leader in providing crucial emergency repair services. Their offerings include online leak repair, hot tapping, line intervention, and field machining, all vital for maintaining the operational continuity of diverse clients across industrial and municipal sectors. With over four decades of expertise, Colt has earned a solid reputation for delivering asset integrity and reliability solutions that prevent costly operational disruptions.

Matthew Rich, a partner at LLCP, expressed enthusiasm about the partnership, highlighting Colt's strong position in the market, which is characterized by its technical expertise and excellent customer service. Rich stated, "We are thrilled to partner with the Colt management team and support the next phase of the Company's growth. Colt has built a market-leading platform distinguished by its technical expertise, exceptional customer service, and mission-critical value proposition."

He emphasized that Colt's services not only help customers avoid downtime but also extend the life cycle of essential infrastructure assets, making them a trusted resource for a diverse clientele.

The existing leadership of the Colt Group, led by CEO Jason Box, will continue to steer the company forward with support from LLCP. Box expressed his excitement about the future, saying, "We are delighted to partner with LLCP as we enter our next chapter. LLCP shares our commitment to customer service, safety and operational excellence, while bringing significant experience helping businesses like ours accelerate growth."

As LLCP integrates Colt into its portfolio, the firm aims to invest in its capabilities and broaden its geographical reach. Colt will benefit from LLCP's extensive resources and industry knowledge, which are expected to contribute significantly to its growth trajectory.

The acquisition of the Colt Group marks LLCP's fifth platform investment from its Levine Leichtman Capital Partners VII, L.P. fund, following its history of investments in infrastructure services, which includes notable companies such as USA Water and In-Place Machining.

This strategic acquisition is indicative of LLCP’s continued focus on expanding its investment realm within critical sectors. By choosing to invest in companies like Colt, LLCP is not just enhancing its portfolio but also reinforcing its commitment to providing essential services that support industrial operations nationwide.

The transaction saw advisory support from Harris Williams and Kirkland & Ellis LLP for LLCP, while Colt received counsel from Houlihan Lokey, Inc. and Willkie Farr & Gallagher LLP. With this acquisition, LLCP continues to solidify its reputation as a seasoned player in the private equity space, having managed approximately $20.6 billion in capital across nearly 20 investment funds since its inception.

The Colt Group, renowned for its technical prowess and customer dedication, is set to flourish under LLCP’s guidance as it continues to navigate the evolving landscape of industrial services. With a shared vision for operational excellence and safety, both LLCP and Colt Group are poised for a promising future together, delivering unparalleled value to their clients and stakeholders.