Walker Group Holdings, LLC

The Company

Walker Group Holdings, LLC (the Company) is a leading manufacturer of high quality custom stainless steel and aluminium equipment for the sanitary, chemical, waste hauling, aviation, petroleum and pharmaceutical industries. With approximately 1,150 employees, the Company is the strategic consolidation of three established companies:

Walker Group – designs and manufactures stainless steel transportation trailers and  storage containers for the food, dairy, beverage, and chemical end-user markets and also manufactures particle containment systems for the pharmaceutical industry.

Brenner Tank – a North American leader in the manufacturing of stainless steel liquid tank trailers in the chemical tank trailer market, the largest sub-segment of the stainless steel trailer market.

Garsite/ Progress Tank – Garsite is the largest global manufacturer and outfitter focused on finishing aircraft refuelling vehicles/tanks for non-military applications. Progress Tank is the leading manufacturer of aluminium and stainless steel truck mounted and tank trailer vacuum tanks, refined fuel tanks, and aviation refueling tanks.

The Situation

Insight Equity, a Dallas, Texas-based private equity fund, acquired Walker Group in 2006.  In 2007, Walker Group made two significant strategic acquisitions, Garsite/Progress Tank and Brenner Tank.  With the initial integration successes of these acquisitions and the overall performance of the three businesses, the Company elected to pursue a dividend recapitalization transaction.

THE TRANSACTION
KPMG Corporate Finance was retained by the board of directors of Walker Group Holdings to render a solvency opinion in connection with a dividend recapitalization transaction, whereby the Company refinanced its existing debt obligations and secured additional financing to fund a significant dividend to its sole shareholder, Insight Equity.