KCPC Holdings to acquire parking company(2)

The affiliate of Kohlberg & Company and Chrysalis Capital Partners has agreed to buy parking and transportation services company Chrysalis Capital Partners.

KCPC Holdings, a company formed by Kohlberg & Company and Chrysalis Capital Partners, has agreed to buy Central Parking Corporation, a Nashville, Tennessee-based provider of parking- and transportation-related services.

The deal is expected to close in the second quarter of this year.

Shareholders will receive $22.53 (€17.15) per share in cash, which is a premium of around 31 percent over Central Parking’s closing price on November 27, 2006. The company announced that The Blackstone Group would be helping it evaluate strategic alternatives on November 28.

KCPC Holdings received equity and debt financing commitments of $903 million for the deal, Central Parking said in a statement.

Founded by its executive chairman Monroe Carell, Central parking operates more than 3,100 parking facilities that contain a total of about 1.5 million spaces. The facilities are located in the US, Canada, Puerto Rico, Latin America, the UK, Ireland and Europe.

Twenty-year-old Kohlberg & Company has about $6 billion in assets under management. Based in Mount Kisco, New York, it invests in the infrastructure, manufacturing, healthcare, consumer products and service industries. The firm bought specialty paper manufacturer International Paper for $180 million in 2005. 

Philadelphia-based Chrysalis Capital invests in middle-market companies and manages about $300 million of committed capital. It closed a $300 million fund focused on restructuring distressed middle-market companies last May. About 80 percent of the fund’s limited partners were institutions and included the Pennsylvania Public School Employees’ Retirement System and the Colorado Public Employees’ Retirement Association, Chrysalis said in a statement at the time of the close.