CI Capital hits halfway mark for Fund II

The firm has completed its sixth platform investment from its $620m fund, acquiring forklift truck leasing business Total Fleet Solutions, and bringing the fund to about 50% invested.

CI Capital Partners has acquired business and industrial services company Total Fleet Solutions, bringing the firm’s $620 million fund to roughly 50 percent invested.

Total Fleet Solutions, which focuses on the procurement and management of forklifts and other material handling equipment, provides a service that few US companies outsource, according to CI Capital managing director Timothy Hall.

“It’s a big market, but one that’s clearly underpenetrated,” Hall said. “Total Fleet’s total market share is less than 2 percent, so we saw great potential to continue the company’s penetration of that market.”

Total Fleet, which generates less than $10 million of earnings before interest, tax, depreciation and amortization, marks CI Capital’s sixth platform investment from its current fund and represents one of the firm’s smaller transactions.

“Our goal is probably to write at the low end a $25 million cheque and at the upper end a $100 million cheque and [Total Fleet] is at the low end of that,” Hall said. “A big part of our diligence was assessing the likelihood that we would invest additional capital into this platform and we think there’s a very good chance that will occur.”

CI Capital’s “buy-and-build” strategy has led the firm to make 23 platform investments and more than 85 add-ons since its founding in 1993.

“One of the issues we have had is that good companies that are larger – meaning $15 million to $20 million of EBITDA – are continuing to sell at very high prices,” Hall said. “We have tried to look at [companies] where maybe you start a little bit smaller but you see a clear path to growing it to not only create value but put more capital against that.”

CI Capital’s acquisition of Total Fleet comes less than a week after the sale of portfolio company Conney Safety Products, a distributor of specialty safety supplies and equipment the firm acquired last July.

New York-based CI Capital Partners spun out of Caxton-Iseman Capital in late 2007 and focuses on the business services, consumer services, distribution, government services, defense and light manufacturing sectors.