Wingate Partners Announces Sale of Industrial Container Services Successful investment in industrial services business leads to exceptional return
DALLAS, Sept. 1, 2011 /PRNewswire/ -- Wingate Partners ("Wingate"), a Dallas-based private equity firm, completed the sale of its portfolio company, Industrial Container Services ("ICS"), to Aurora Capital Group ("Aurora"), a Los Angeles-based private equity firm. ICS is the U.S. leader in the reconditioning, recycling and distribution of 55 gallon steel drums for use in food, industrial and energy markets.
Wingate partnered with the ICS management team to acquire the business in September 2005. During the subsequent six years ICS executed seven add-on acquisitions, expanded its geographic footprint, and significantly increased its share of the US recycled drum market. Through this period ICS nearly doubled revenue and more than tripled EBITDA. "The ICS team has done an outstanding job of executing day in and day out to achieve a compelling vision. They are first class people and world class operators. It's been a privilege to partner with them," said Brad Brenneman, a Principal at Wingate Partners.
Calvin Lee, ICS' CEO, commented that, "Wingate has been the consummate partner. They bring a wealth of experience and a low-ego, highly approachable style that has made them a pleasure to partner with. The ICS team looks forward to continuing our growth with our new partners at Aurora."
Bud Applebaum, Principal at Wingate Partners, said, "ICS represents the ideal type of industrial services investment for Wingate. Prior to our investment, ICS had been a relatively slow growth business in a low growth industry. However, ICS has consistently provided a highly valuable service to its customers and the ICS team has done a terrific job of executing on opportunities to make the business grow more rapidly and become more profitable."
In connection with the transaction, a Piper Jaffray team led by Michael Dillahunt provided financial advice to Wingate and ICS. Haynes and Boone provided legal advice.
Industrial Container Services (www.iconserv.com) is the largest provider of reusable container solutions in the United States. ICS strives to be the supplier that customers call first for high quality, environmentally responsible products and services at the best possible value. The Company offers unparalleled expertise with over 100 years experience in the industrial container industry. ICS is focused on anticipating customer needs and exceeding expectations. The Company offers the most complete container management system available including supply, reconditioning and retrieval.
About Wingate Partners
Wingate Partners (www.wingatepartners.com) was founded in 1987 to purchase controlling equity interests in companies where there is the opportunity to create value through superior operational and strategic execution. Typically, Wingate's investments fall into two primary categories: profitable companies in changing or out of favor industries and under-performing companies. In both cases, equity value is created by improving the operating performance of the business and by developing long-term strategies to exploit changing industry dynamics. Our professionals bring substantial senior-level operating and strategic experience in addition to extensive careers in acquiring companies.
SOURCE Wingate Partners