TerraVest acquires KBK Industries for $90M (U.S.)

Executive Summary

• TerraVest Industries Inc. has completed the acquisition of KBK Industries LLC, a Texas-based manufacturer of fiberglass and steel storage tanks, for $90.0 million in cash.
• The acquisition expands TerraVest’s presence in the U.S. market, complementing its existing Canadian and Maryland-based fiberglass tank operations (under the Composite USA brand).
• The transaction was financed using TerraVest’s existing credit facility and represents a multiple of approximately 5.6 times KBK's trailing-12-month EBITDA.

Key Details

• Transaction Value: $90.0 million (U.S.) cash.
• Purchase Price Adjustment: Subject to a working capital adjustment approximately 90 days post-closing.
• Valuation Metric: The purchase price represents a multiple of approximately 5.6 times to KBK's trailing-12-month EBITDA.
• Target Company Profile:
  • Name: KBK Industries LLC.
  • Headquarters: Houston, Texas.
  • Manufacturing Facilities: Rush Center and Liberal, Kansas.
  • Products: Aboveground and underground fiberglass tanks.
  • Target Markets: C-store, agricultural, chemical, infrastructure, and energy markets.
• Strategic Rationale:
  • Establishes an existing manufacturer footprint in the United States market.
  • Complements TerraVest's existing aboveground fiberglass tank operations in Canada.
  • Complements recently acquired fiberglass tank operations in Maryland (January 2025) under the Composite USA brand.
  • Leverages TerraVest’s subsidiary relationships in the C-store market segment to enhance KBK’s sales channels.
  • Provides added geographical diversification to mitigate tariff exposure across TerraVest's corporate platform.
• Financing: TerraVest utilized its existing credit facility to finance the acquisition.
• Key Personnel Quote: John Jacob, President of Highland Tank Holdings Inc., stated that KBK is a strong strategic fit and that the addition provides the broadest product offering across the fiberglass and steel tank markets, enhancing optionality for the existing customer base.

Notable Quotes

• "KBK is a strong strategic fit for TerraVest, and in combination with Highland Tank and other TerraVest businesses, TerraVest now has the potential to provide the broadest product offering across the fibreglass and steel tank markets. The addition of KBK to the TerraVest portfolio will be beneficial to the existing customer base of both KBK and TerraVest, providing them with enhanced optionality in the industry," — John Jacob, President of Highland Tank Holdings Inc.