Solace Capital Partners, a leading private equity firm specializing in special situations investments, made a significant move in early 2018 by acquiring CST Industries Inc., a global heavyweight in the manufacturing of storage tanks and domes. This acquisition, announced on March 1st, 2018, underscores Solace Capital Partners’ strategic focus on investing in market-leading companies with strong growth potential.
CST Industries, headquartered in Kansas City, Missouri, boasts a remarkable 125-year history and a reputation as the world’s largest manufacturer of storage tanks and domes. The company’s comprehensive offerings extend beyond manufacturing to include cover products, specialized coating and lining services, and full-service field installation, inspection, maintenance, and retrofitting. CST serves a diverse range of end markets and has established a massive installed base of over 350,000 storage tanks and 18,000 covers across 125 countries. With a global footprint that includes nine sales offices spanning from the United States and Mexico to Brazil, Spain, Argentina, the U.A.E., Vietnam, and Australia, and five manufacturing facilities across North America and Europe, CST Industries represents a truly international operation.
Christopher Brothers, Managing Partner at Solace Capital Partners, highlighted the strategic rationale behind the acquisition, stating, “CST is a market leader with a blue‐chip customer base, diversified revenue streams and many exciting growth opportunities. As global demand for storage tanks and covers increases, we believe CST is well positioned to leverage its scale, unique engineering and manufacturing expertise, strong and growing order backlog and significantly strengthened balance sheet to meet the needs of its customers worldwide.” This statement emphasizes Solace Capital Partners’ belief in CST’s strong market position and its potential to capitalize on growing global demand within its sector. The acquisition aligns with Solace Capital Partners’ investment philosophy of targeting companies with strong fundamentals and opportunities for value creation through strategic partnerships and operational improvements.
Echoing this sentiment, Tim Carpenter, CEO of CST Industries, expressed enthusiasm for the partnership, noting, “This is an exciting new chapter for our company. Over the past 18 months, we have made significant operational improvements across all facets of the business, enhancing our safety, quality, delivery, manufacturing proficiency, responsiveness and customer satisfaction. We are thrilled to partner with Solace, which recognizes the opportunities in our business and will help us reach our full potential.” Carpenter’s remarks point to the positive momentum already underway at CST Industries and the expectation that Solace Capital Partners’ investment will further accelerate the company’s growth trajectory and operational excellence.
About Solace Capital Partners
Solace Capital Partners distinguishes itself as a private investment firm concentrating on control-oriented special situations and distressed-for-control investments. The firm targets lower-middle market companies facing complexity, distress, or capital constraints. The principals at Solace Capital Partners bring an average of 25 years of relevant investment experience across diverse industries and have cultivated extensive networks over two decades. Since its inception in 2014, Solace Capital Partners has established a presence with offices in Los Angeles and New York, solidifying its position as a key player in the private equity landscape. Further details about their investment approach and portfolio can be found at www.solacecap.com.
About CST Industries
CST Industries stands as the world’s preeminent manufacturer of domes and storage tanks. Its portfolio includes CST Storage, CST Covers, and Vulcan Tanks. Operating with five manufacturing facilities and technical design centers across North America and the United Kingdom, and supported by a network of regional and international sales offices, CST maintains a truly global reach. The company’s extensive installed base of over 350,000 storage tanks and 18,000 covers across 125 countries demonstrates its long-standing industry leadership and global impact.
This acquisition of CST Industries by Solace Capital Partners represents a strategic alignment of strengths, positioning CST for continued growth and market leadership under the guidance and investment expertise of Solace Capital Partners. The partnership is poised to leverage CST’s established global presence and Solace Capital Partners’ financial and operational resources to capitalize on expanding opportunities in the global storage solutions market.
