Ashland Capital Partners Announces Sale of KBK Industries
Ashland Capital Partners (“Ashland”), a Chicago-based private investment firm focused on building enduring industrial businesses, announced the sale of KBK Industries (“KBK”), a premier manufacturer of fiberglass and steel tanks and separation equipment, marking the conclusion of a highly successful 19-year partnership between the two organizations.
A Long-Term Partnership Defined by Patient Capital
Ashland Capital Partners’ investment in KBK Industries stands as a clear example of the firm’s long-term, patient capital approach—one rooted in partnership, trust, and value creation over time. Rather than pursuing short-term gains, Ashland focused on building a durable business by investing in people, processes, and infrastructure.
“Our long-term investment in KBK exemplifies Ashland’s philosophy of patient capital and partnership,” said Jim Lynch, Founder and Chairman of Ashland Capital Partners. “We didn’t just buy a business; we invested in people and infrastructure to build a market leader.”
This philosophy guided Ashland’s stewardship of KBK Industries from its initial acquisition in 2006 through its evolution into a recognized leader in liquid storage and separation solutions.
Building Market Leadership Through Strategic Growth
Headquartered in Houston, Texas, KBK Industries is widely respected for its high-quality liquid storage and separation systems serving the energy, chemical, agricultural, and wastewater sectors. Since acquiring the company, Ashland worked closely with KBK’s management team to expand manufacturing capabilities, enhance operational efficiency, and strengthen the company’s competitive positioning—while preserving KBK’s long-standing reputation for quality, reliability, and customer service.
Throughout the partnership, Ashland supported investments in advanced manufacturing infrastructure, process optimization, and product innovation. These initiatives enabled KBK to scale its operations, broaden its end-market reach, and respond effectively to evolving customer needs across multiple industrial sectors.
Importantly, Ashland’s approach allowed KBK to grow without compromising its core values or culture—an element that proved central to the company’s sustained success.
Exceptional Investment Performance and Returns
The strength of KBK’s growth trajectory and operational execution translated into outstanding investment results for Ashland Capital Partners. Since the firm’s initial investment in 2006, and including all realized proceeds, Ashland generated an annual internal rate of return (IRR) of 45.5% and a multiple of invested capital (MOIC) of 118x on its equity investment in KBK Industries.
These results underscore the effectiveness of Ashland’s long-term ownership model, disciplined capital allocation, and close collaboration with management teams to drive sustainable value creation.
Leadership and Operational Excellence
A key driver of KBK’s success has been the leadership of CEO Steven White, under whose guidance the company achieved significant operational milestones. During his tenure, KBK further strengthened its reputation for innovation, efficiency, and high-performance manufacturing solutions.
By emphasizing operational discipline, continuous improvement, and customer-focused product development, the leadership team positioned KBK as a trusted partner for customers operating in complex and demanding environments.
Looking Ahead to the Next Chapter
“This announcement marks an exciting new chapter for KBK Industries,” said Steven White, CEO of KBK. “Ashland Capital Partners has been an exceptional partner, providing the strategic resources and autonomy needed to grow while staying true to our core values of quality manufacturing and customer service.”
As KBK enters its next phase, the company is well-positioned to build on its strong foundation, pursue new growth opportunities, and continue delivering innovative solutions to its customers.
Honoring Founder Legacy and Ongoing Support
The transaction also reflects the enduring commitment of KBK’s founder, Bill Baalmann, whose vision and entrepreneurial leadership laid the groundwork for the company’s success. Following Ashland’s acquisition, Baalmann remained a Limited Partner and an active supporter of the business, providing continuity and reinforcing KBK’s culture of excellence.
Strong Financial Partnerships
Ashland Capital Partners was supported in this investment by its long-time partner, Main Street Capital Corp (NYSE: MAIN). The collaboration between Ashland and Main Street Capital further reinforced the financial strength and strategic alignment behind KBK’s long-term growth journey.
Together, these partnerships highlight how patient capital, aligned leadership, and a shared commitment to quality can create lasting value across decades.
About Ashland Capital Partners
Ashland Capital Partners is a values-driven investment firm based in Chicago, focused on investing in and growing lower-middle-market industrial companies.
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