Quala and Boasso Global are set to merge in a monumental move that also will see Quala—which recently combined with PSC to form an expansive tank cleaning, maintenance, and parts provider—change private-equity ownership.
Under the terms of the agreement, KKR—which last year acquired Boasso from Apax Partners—will purchase Quala’s shares from Advent and inject further growth capital into Boasso to facilitate the merger of the two businesses to create one of the “leading infrastructure services solution providers for the liquid bulk logistics industry,” the companies said.
“Our organizations not only have a strong commercial relationship, but also shared cultures of delivering excellence, innovation and safety for our customers,” Quala CEO Scott Harrison said in a news release. “This combination with Boasso and new investment from KKR will allow us to advance our position as a leading provider of container cleaning and maintenance services, while continuing to seamlessly meet our customers’ needs.
“Together, Quala and Boasso will benefit from greater connectivity to our customers, an expanded global footprint, and new opportunities for our team members as part of a larger combined organization.”
See also: Quala’s acquisition of PSC creates ‘one-stop-shop’ for tank trailer services
Quala, which acquired PSC last May from American Industrial Partners, had 126 locations and more than 1,500 employees before the Boasso deal. Advent had held Quala since buying it from Roark Capital Group in 2016. Boasso was known as Quality Distribution before divesting its Quality Carriers bulk liquid transport business—now part of CSX Transportation—in 2021. Apax first acquired a majority share in Boasso in 2015.
“We are focused on meeting the needs of our global customers and the combination of Boasso and Quala makes perfect strategic sense,” said Joe Troy, CEO of Boasso, a provider of infrastructure services for the ISO tank container industry in North America and Europe. “This transaction will enhance our ability to deliver safe, compliant and best-in-class services to our ISO tank container customers and meaningfully expand our access to more locations across North America to better serve their needs.
“This is a rare opportunity to put together two Tampa-based, complementary businesses and I am excited to work with Scott and his talented team to unite the best of our organizations with a focus on enhanced efficiency and growing our range of premium solutions for the liquid bulk logistics industry.”
KKR, Boasso’s majority shareholder, is investing in Quala through its KKR Global Infrastructure Investors IV fund, the company said.
“Boasso and Quala are premier infrastructure service providers to the global liquid bulk logistics ecosystem with trusted reputations and highly complementary networks and service offerings,” said Dash Lane, partner at KKR. “This transaction is about growth and empowering the two great teams led by Joe Troy and Scott Harrison to come together and make long-term investments in quality, safety and superior solutions for customers.”
Under Advent’s ownership, Quala grew “significantly,” adding 38 maintenance facilities and 300 mechanics just last year in the PSC combination. Accomplishments include developing a proprietary technology suite, OnTrax, to make Quala’s services more “seamless.” Advent’s investment also enabled Quala to scale its footprint from 60 locations and 500 employees in 2016 to 126 locations and more than 1,500 employees today.
The transaction is expected to close in the first half of 2023.
“We have been proud to partner with Scott and Quala’s senior leadership team as they have transformed their company into an industry leader,” said Stephen Hoffmeister, managing director at Advent. “The Quala management team has delivered compelling performance by driving an employee-first culture, technological innovation, and customer excellence.
“Quala is a well-invested platform strategically positioned to continue its success and make important investments for its people.”
