Solace Capital Partners-Backed CST Industries Acquires Ostsee Tank Solutions

KANSAS CITY, Mo.--(BUSINESS WIRE)--Solace Capital Partners, L.P. (“Solace”), a leading private equity firm focused on providing creative capital solutions for middle market companies, today announced that its portfolio company CST Industries, Inc. (“CST” or the “Company”), a global leader in storage tanks and covers, has acquired Ostsee Tank Solutions GmbH (“OTS”).

OTS is a leading manufacturer of innovative tank solutions, including aluminum domes and covers, for various industrial applications. With a focus on quality and customer satisfaction, OTS is committed to delivering superior products and services to meet the needs of its global customer base.

CST plans to utilize OTS’s state-of-the-art facilities and solutions to expand production and global market usage of CST’s Optidome EU^TM product line.

“OTS is highly complementary to CST and its adjacency to our EMEA operations will help provide increased production capacity as well as the ability to capture greater market share in the region. This transaction is consistent with CST’s approach to expand its geographic footprint internationally through organic and attractive M&A opportunities. We are pleased to support the Company as it strengthens its position as a leading provider of storage tank, dome, and cover solutions,” said Christopher Brothers, Co-Founder and Managing Partner of Solace.

Since Solace’s initial investment, CST has achieved significant growth, increasing EBITDA by over 150%. The Company currently operates out of seven manufacturing facilities and four sales offices worldwide, servicing a diverse array of end markets, including water & wastewater, agriculture, industrial liquids, power & energy, and food & beverage. CST is led by a seasoned management team recruited by Solace, including 30-year industry veteran Jeff Mueller, who serves as President and Chief Executive Officer, and Larry Fox, who serves as Chief Financial Officer.

Noerr acted as legal advisor and PricewaterhouseCoopers acted as financial advisor.

About Solace Capital Partners

Solace Capital Partners is a Los Angeles-based private investment firm focused on providing flexible capital solutions for middle market companies in the United States and Canada. Solace seeks to form collaborative partnerships with management teams and leverage the firm’s extensive resources to realize operational improvements and drive performance in its portfolio companies while generating attractive risk-adjusted returns for its investors. For more information, please visit www.solacecap.com.

About CST Industries

CST Industries is the largest dome and storage tank manufacturer in the world. CST’s global network includes manufacturing facilities and technical design centers across North America, Europe, the United Kingdom, and Vietnam which are complemented by a network of global sales offices. With over 130 years of industry experience, CST is dedicated to delivering high-quality solutions to customers worldwide. CST has installed more than 400,000 storage tanks and 40,000 covers across 125 countries throughout the world. For more information, please visit www.cstindustries.com.