Omers Private Equity is buying transportation business Kenan Advantage Group Inc. from Goldman Sachs Capital Partners and Centerbridge Partners.
North Canton, Ohio-based Kenan provides liquid bulk transportation services for the fuel, chemical, liquid foods and merchant gas markets in North America.
The company has been backed by Goldman Sachs Capital Partners, the PE investment arm of Goldman Sachs (NYSE: GS), and private equity firm Centerbridge Partners since 2010, when the pair bought a majority stake in the business from PE firm Littlejohn & Co.
Omers Private Equity, the PE arm of Canadian pension fund Omers, expects to grow Kenan organically and through add-on acquisitions. On the pension side, Omers has more than $58 billion in assets under management. The firm is also invested in Accelerated Rehabilitation Centers, CBI Health Group and Husky Injection Molding.
Harris Williams & Co advised Omers on the deal, and Weil Gotshal & Manges LLP was legal counsel.
Midstream oil companies, the groups that provide transportation, storage and marketing of oil, are expected to generate a significant amount of M&A as a consequence of volatile oil prices. While upstream energy businesses, which explore and drill for oil, struggle with a slackened need for their services, there is plenty of infrastructure and transporting for the midstream players to handle. For more on how oil prices are affecting M&A, see 5 Ways Plummeting Energy Prices are Changing M&A.