Ashland Capital Partners Announces Sale of KBK Industries, a Leading U.S. Manufacturer of Specialty Tank Solutions
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internal rate of returnfinancial
A percentage that represents the annualized yield an investment would earn, taking into account the timing and amount of all cash inflows and outflows; mathematically it is the rate that makes the discounted sum of future cash flows equal the initial cost. Investors use it to compare different projects or deals the way they compare interest rates — a higher internal rate of return suggests a stronger potential payoff, but it does not by itself show risk, scale, or timing nuances.
irrfinancial
IRR (Internal Rate of Return) is the annualized percentage return an investment is expected to produce based on its projected series of cash outflows and inflows; mathematically, it’s the rate that makes the present value of those cash flows balance to zero. Investors use IRR to compare and rank projects or investments—similar to comparing the interest rates on savings accounts—to judge which offers the best return for the time and risk involved.
multiple of invested capitalfinancial
Multiple of invested capital is a simple ratio that shows how many dollars an investor has now (or expects to get) for each dollar they put in. Think of it as counting how many slices of pie you receive compared with the slice you paid for; it's a quick measure of total return and helps investors compare how much value an investment produced without accounting for how long that value took to appear.
moicfinancial
MOIC (Multiple on Invested Capital) is a simple ratio that shows how many times an investor’s original money has been returned — for example, 2.0x means you got back twice what you put in. It matters to investors because it gives a clear snapshot of total cash outcome compared with the initial stake, like checking how many apples you got back for each seed planted, though it does not account for how long the investment took to produce that return.
limited partnerfinancial
A limited partner is an investor in a pooled investment vehicle—such as a private equity, venture capital, or real estate fund—who provides capital but does not take part in day‑to‑day management and whose financial responsibility is capped at the amount invested. For investors, being a limited partner matters because it defines how much control they have, how much risk they bear, and how returns are distributed; think of a limited partner as a silent co‑owner who shares in profits and losses while leaving operations to the fund managers.
CHICAGO--(BUSINESS WIRE)--
Ashland Capital Partners (“Ashland”), a Chicago-based private investment firm focused on building enduring industrial businesses, today announced the sale of KBK Industries (“KBK”), a premier manufacturer of fiberglass and steel tanks and separation equipment. The transaction concludes a highly successful 19-year partnership between Ashland and KBK.
Headquartered in Houston, Texas KBK Industries has long been recognized as a trusted provider of liquid storage and separation solutions for the energy, chemical, agricultural, and wastewater industries. Since acquiring the business in 2006, Ashland has worked alongside management to scale the company’s manufacturing capabilities, while preserving its legacy of quality and reliability.
“We are incredibly proud of what we have accomplished together with the KBK team over the last 19 years,” said Jim Lynch, Founder and Chairman at Ashland Capital Partners. “Our long-term investment in KBK exemplifies Ashland’s philosophy of patient capital and partnership. We didn’t just buy a business; we invested in people and infrastructure to build a market leader.”
As a result, since Ashland Capital Partners’ initial investment in 2006 and including all realized proceeds, Ashland generated an annual internal rate of return (“IRR”) of 45.5% and a multiple of invested capital (“MOIC”) of 118x on its equity investment in KBK Industries.
Under the leadership of CEO Steven White, KBK has achieved significant operational milestones and solidified its reputation for innovation.
“This announcement marks an exciting new chapter for KBK Industries,” said Steven White, CEO of KBK. “Ashland Capital Partners has been an exceptional partner, providing the strategic resources and autonomy needed to grow while staying true to our core values of quality manufacturing and customer service.”
The transaction also reflects the enduring commitment of KBK’s founder, Bill Baalmann, who remained a Limited Partner and supporter of the business following Ashland’s acquisition.
Ashland Capital Partners was supported in this investment by its long-time partner, Main Street Capital Corp (NYSE: MAIN).
About Ashland Capital Partners Ashland Capital Partners is a values-driven investment firm based in Chicago, focused on investing in and growing lower-middle-market industrial companies.
