Kinderhook Seizes Growth Opportunity with JDC Acquisition

Kinderhook Partners with Management to Recapitalize JDC

Kinderhook Industries, LLC announced its recent acquisition of Jack Doheny Companies, Inc. (JDC), a prominent distributor of specialized equipment. This strategic move highlights Kinderhook's commitment to enhancing its portfolio within the environmental and industrial service sectors.

Overview of JDC and Its Offerings

Jack Doheny Companies, founded in 1973 and headquartered in Michigan, specializes in providing essential equipment for electric transmission and distribution, sewer inspection and maintenance, and various utility markets. With a range of offerings that includes vacuum trucks, hydro-excavators, and aerial boom trucks, JDC serves a diverse clientele across North America.

Equipment and Services

JDC is recognized for its comprehensive suite of products designed for mission-critical applications. Their extensive rental fleet boasts over 1,300 pieces of high-performance machinery, ensuring reliable solutions are on hand for customers when needed.

Strategic Growth Opportunities

According to Steve Shafer, CEO of JDC, this partnership is a remarkable opportunity to heighten their growth trajectory. By collaborating with Kinderhook, JDC aims to further invest in expanding their rental assets and improve their service offerings. With this acquisition, the company is set to strengthen its market presence and explore new geographic territories.

Commitment to Operational Excellence

Robert Michalik, Managing Director of Kinderhook, emphasizes the importance of aligning with leaders in the industry. He noted that JDC embodies the qualities Kinderhook seeks: a strong track record, an esteemed management team, and a blueprint for future growth. The partnership promises to enhance JDC's operational capabilities while providing superior services to its customers.

Financial Backing and Support

The acquisition of JDC was facilitated through financing from a consortium that includes Comerica Bank, Truist Bank, Huntington Bank, KeyBank, Citizens Bank, Fifth Third Bank, and First Merchants Bank. This strong financial backing supports Kinderhook’s commitment to its strategic expansion plans.

Legal and Financial Advisors

Legal advice for Kinderhook was provided by Kirkland & Ellis LLP, while Schwartz Advisors LLC acted as the financial advisor to JDC, with legal counsel from Taft Stettinius & Hollister LLP. This team collaborated closely to ensure a seamless transaction process.

About Kinderhook Industries

Founded in 2003, Kinderhook Industries, LLC operates as a private investment firm with a track record of raising $8.5 billion in committed capital. Their focus remains on identifying and nurturing growth-oriented investments, primarily within the middle market, particularly in sectors like healthcare services and environmental & industrial services.

About JDC

JDC remains at the forefront of specialty equipment solutions, ensuring their clients receive top-notch products and services. This acquisition marks a significant milestone in the company's journey as they continue to address the needs of their customer base through reliable and high-quality machinery.

Frequently Asked Questions

What prompted Kinderhook's acquisition of JDC?

Kinderhook aims to enhance its portfolio in the specialty equipment market by partnering with a leader like JDC, known for its operational excellence.

How does JDC support its clients?

JDC offers a wide range of specialized equipment rentals and services tailored for critical applications, ensuring that clients have access to reliable machinery when needed.

What are the future plans for JDC post-acquisition?

JDC plans to invest further in its equipment fleet and expand its market reach, enhancing its service offerings for existing and new customers.

What sectors does Kinderhook focus on for investments?

Kinderhook primarily invests in middle-market businesses within healthcare services, environmental and industrial services, and more.

Who advised Kinderhook during the acquisition?

Kirkland & Ellis LLP served as legal counsel, ensuring all aspects of the acquisition were thoroughly vetted and executed smoothly.

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