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

Mr. Dustin Haw reports TERRAVEST ANNOUNCES THE ACQUISITION OF KBK INDUSTRIES, LLC TerraVest Industries Inc. has acquired KBK Industries LLC, a Texas-based manufacturer of fibreglass and steel storage tanks. Headquartered in Houston, Tex., with manufacturing facilities in Rush Center and Liberal, Kansas, KBK is a well-known manufacturer of aboveground and underground fibreglass tanks for the C-store, agricultural, chemical, infrastructure and energy markets. KBK was acquired for $90.0-million (U.S.) cash, subject to a working capital adjustment approximately 90 days postclosing. The purchase price represents a multiple of approximately 5.6 times to KBK's trailing-12-month EBITDA (earnings before interest, taxes, depreciation and amortization). Strategic rationale Established manufacturer of aboveground and underground fibreglass tanks for the United States market; Complements TerraVest's existing aboveground fiberglass tank operations in Canada and recently acquired fibreglass tank operations in Maryland (January, 2025) under the Composite USA brand name; Opportunity to leverage TerraVest's subsidiary's relationships in the C-store market segment to enhance KBK's sales channels; Added geographical diversification further mitigates against tariff exposure across TerraVest's corporate platform. John Jacob, president of Highland Tank Holdings Inc., welcomes the employees and management of KBK and looks forward to their continuing commitment to the company and dedication to their customers. "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," said Mr. Jacob. TerraVest utilized its existing credit facility to finance the acquisition of KBK. We seek Safe Harbor.