HOUSTON, TX, August 31, 2022 – The Capstreet Group (“Capstreet”), a Houston-based lower middle market private equity firm, announced today that it has sold Thorpe Specialty Services (“Thorpe” or the “Company”), a maintenance and engineering services and solutions provider in petrochemical and other industrial markets, to KLH Capital (“KLH”). Financial terms of the transaction were not disclosed.
Thorpe, which can trace its roots back to 1954 provides critical, skilled craft services and custom fabricated products to companies operating in high temperature, severe services, caustic, acidic and highly corrosive environments. Headquartered in Houston, TX with additional branch locations across Texas, Louisiana, Oklahoma, Alabama, and Western Canada, Thorpe serves customers including Fortune 500 companies and independent producers across petrochemical, power, pulp & paper, oil & gas, mining and other energy-intensive industries throughout the U.S. and internationally.
“Through our partnership with management, Capstreet helped Thorpe transform its business by strengthening its leadership team, improving operations, and expanding its service offerings, ultimately enabling the Company to better serve its customers,” said George Kelly, Managing Partner at Capstreet. “We’re pleased with this positive outcome and wish the Thorpe team the best of luck as they seek further growth.”
Under Capstreet’s ownership, the Thorpe platform grew through both organic and inorganic initiatives, including the completion and integration of several mergers and acquisitions. In addition, Capstreet made investments in Thorpe’s technology, business processes, and sales and marketing, helping to institutionalize the platform.
“Working with the Capstreet team has been a wonderful experience, and we are proud of the work we accomplished together to build the Company,” said Chad Fletcher, CEO of Thorpe. “Thanks to Capstreet’s resources and the hard work of our team, we were able to reposition the Company and take advantage of strong industry tailwinds.”
“We thank Chad and the entire management team for their support as we prepared the Company for this important milestone,” said Walker Kahle, Senior Vice President of Portfolio Operations at Capstreet.
Willkie Farr & Gallagher LLP served as legal counsel and GulfStar Group was the financial advisor for Capstreet.
About Thorpe Specialty Services
Thorpe Specialty Services is a leading specialty services provider in energy and industrial markets for maintenance and engineering for corrosion, refractory and scaffolding and insulation. Clients turn to Thorpe for reoccurring specialty services related to the maintenance of critical infrastructure assets operating in high-temperature and highly corrosive environments. From Fortune 500 companies to independent producers and EPC’s across petrochemical, power, pulp & paper, oil & gas, mining and other energy-intensive industries, Thorpe is a trusted partner for extending equipment lifecycles and increasing productivity for refineries, chemical, petrochemical and industrial plants.
About The Capstreet Group
Founded in 1990, Capstreet invests in lower middle market software, tech-enabled services, and industrial business services companies. With over 45 platform investments and over 200 add-on acquisitions since inception, Capstreet’s investment strategy is focused on utilizing its Capvalue Framework™ to accelerate growth and profitability, and create long term sustainable businesses. The majority of Capstreet’s investments have been with founder- or entrepreneur-owned businesses. For more information, visit the Capstreet website, www.capstreet.com.