Kian Capital Announces Majority Recapitalization of SPATCO and Two Add-on Acquisitions

Kian Capital Partners (“Kian”), a middle-market focused private investment firm, announced today that it completed a majority recapitalization of SPATCO Energy Solutions (“SPATCO”), a leading fueling equipment and services provider in the Southeast, in September 2020 and closed on two add-on acquisitions—The Southern Company of North Little Rock (“SoCo”) in December 2020 and Adams Tank & Lift (“AT&L”) in July 2021. Both are market-leading single-source petroleum providers in Arkansas and Florida, respectively. Organic growth, a strong management team and the recent acquisitions have led to SPATCO more than doubling EBITDA since Kian’s initial 2020 investment.

SPATCO has 85+ years of experience as the go-to provider for petroleum equipment, installation, maintenance and environmental compliance with a full breadth of services, cutting edge technology and turnkey solutions. SoCo and AT&L are equally well-respected full-service, comprehensive fuel distribution providers with long-standing histories within the industry. The acquisitions significantly expand the company’s resources, capabilities and coverage areas, creating efficiencies and opportunities for its employees, customers and vendors. The combined companies will have over 600 employees with 350+ technicians and 23 offices across 10 states in the Southeast.

“Kian’s partnership, along with our buy-and-build strategy and success with adding these two companies, will continue to help us innovate and scale, creating opportunity for our team members, customers, vendors and communities,” said President & CEO of SPATCO John Force. “After working with and getting to know the Kian team over the past several years, we are confident that they will empower us with the additional resources and expertise we need to maximize our company’s potential. Together we are laser-focused on continuing to grow our business, invest in our people and better serve our customer base with cutting-edge technology, expanding capabilities and broader geographic reach.”

In March 2015, Kian became a lender and minority investor in SPATCO. Watching the company’s management team execute over a five-year period provided the confidence to take the partnership to the next level when approached with the opportunity. The investment underscores Kian’s focus on investing in market leaders with proven management teams in fragmented industries with an opportunity to enhance market position by executing on specialized buy-and-build strategies. The addition of SoCo and AT&L accelerates SPATCO’s long-term strategy focused on growth both organically and through future acquisitions.

“Technology is driving innovation in the fuel and equipment services industry, forcing providers to keep up with the demand and prompting consolidation in the space,” said Co-Founder and Partner at Kian Kevin McCarthy. “SPATCO is on the leading edge of technology. Our history with SPATCO allowed us to move confidently and quickly to execute a buy-and-build growth strategy that has already been very successful because of SPATCO’s strong reputation in the industry. We look forward to the next chapter and are thrilled to provide the resources and support the management team needs to help them scale.”

Kian is SPATCO’s lead investor along with co-investors RF Investment Partners and PA Capital. Robinson, Bradshaw & Hinson, P.A. acted as Kian’s legal advisor.