--- title: "Capstreet Completes the Sale of Thorpe Specialty Services" description: "HOUSTON, TX, August 31, 2022, The Capstreet Group (“Capstreet”), a Houston-based lower middle market private equity firm, announced today that it has sold..." url: https://capstreet.multisites.ai/news/capstreet-completes-the-sale-of-thorpe-specialty-services publisher: Capstreet phone: +1-713-332-2700 contact: https://capstreet.multisites.ai/contact --- # Capstreet Completes the Sale of Thorpe Specialty Services Industrial servicesPublished August 31, 20223 min read ![Capstreet team members at Houston Reads Day](https://capstreet.multisites.ai/_astro/houston-reads-day.DxNd9bIr_Z23gxjt.webp) HOUSTON, TX, August 31, 2022 – The Capstreet Group (“Capstreet”), a Houston-based lower middle market private equity firm, announced today that it has sold Thorpe Specialty Services (“Thorpe” or the “Company”), a maintenance and engineering services and solutions provider in petrochemical and other industrial markets, to KLH Capital (“KLH”). Financial terms of the transaction were not disclosed. Thorpe, which can trace its roots back to 1954 provides critical, skilled craft services and custom fabricated products to companies operating in high temperature, severe services, caustic, acidic and highly corrosive environments. Headquartered in Houston, TX with additional branch locations across Texas, Louisiana, Oklahoma, Alabama, and Western Canada, Thorpe serves customers including Fortune 500 companies and independent producers across petrochemical, power, pulp & paper, oil & gas, mining and other energy-intensive industries throughout the U.S. and internationally. “Through our partnership with management, Capstreet helped Thorpe transform its business by strengthening its leadership team, improving operations, and expanding its service offerings, ultimately enabling the Company to better serve its customers,” said George Kelly, Managing Partner at Capstreet. “We’re pleased with this positive outcome and wish the Thorpe team the best of luck as they seek further growth.” Under Capstreet’s ownership, the Thorpe platform grew through both organic and inorganic initiatives, including the completion and integration of several mergers and acquisitions. In addition, Capstreet made investments in Thorpe’s technology, business processes, and sales and marketing, helping to institutionalize the platform. “Working with the Capstreet team has been a wonderful experience, and we are proud of the work we accomplished together to build the Company,” said Chad Fletcher, CEO of Thorpe. “Thanks to Capstreet’s resources and the hard work of our team, we were able to reposition the Company and take advantage of strong industry tailwinds.” “We thank Chad and the entire management team for their support as we prepared the Company for this important milestone,” said Walker Kahle, Senior Vice President of Portfolio Operations at Capstreet. Willkie Farr & Gallagher LLP served as legal counsel and GulfStar Group was the financial advisor for Capstreet. ## About Thorpe Specialty Services Thorpe Specialty Services is a leading specialty services provider in energy and industrial markets for maintenance and engineering for corrosion, refractory and scaffolding and insulation. Clients turn to Thorpe for reoccurring specialty services related to the maintenance of critical infrastructure assets operating in high-temperature and highly corrosive environments. From Fortune 500 companies to independent producers and EPC’s across petrochemical, power, pulp & paper, oil & gas, mining and other energy-intensive industries, Thorpe is a trusted partner for extending equipment lifecycles and increasing productivity for refineries, chemical, petrochemical and industrial plants. ## About The Capstreet Group Founded in 1990, Capstreet invests in lower middle market software, tech-enabled services, and industrial business services companies. With over 45 platform investments and over 200 add-on acquisitions since inception, Capstreet’s investment strategy is focused on utilizing its Capvalue Framework™ to accelerate growth and profitability, and create long term sustainable businesses. The majority of Capstreet’s investments have been with founder- or entrepreneur-owned businesses. For more information, visit the Capstreet website, [www.capstreet.com](https://capstreet.multisites.ai/). ## Terms on this page - [Lower Middle Market](https://capstreet.multisites.ai/glossary/lower-middle-market) - [Private Equity](https://capstreet.multisites.ai/glossary/private-equity) ## Keep reading - [Automotive technology private equity for dealer-focused companiesCapstreet invests in automotive technology businesses that help dealerships. The firm targets solutions for sales, marketing, finance and insurance, and service lane operations. It describes several recent investments in the sector and looks for owners with $3 to $15 million of EBITDA who want a majority capital partner.](https://capstreet.multisites.ai/industries/automotive) - [Business Succession and Exit Options: How to Choose the Right Next Step for Your CompanyOwners have five main exit paths: transfer to family, sell to management, sell to employees through an ESOP, sell to a strategic buyer, or partner with private equity. Each trades price, speed, control and legacy differently. Start planning at least three to five years before you want to step back.](https://capstreet.multisites.ai/business-succession-and-exit-options) - [Buy and Build Strategy: How a Platform Company Grows Through Add-On AcquisitionsA buy and build strategy starts with one well-run platform company and adds smaller businesses to it over time. The goal is a larger, more capable company than any single piece could be. It fits fragmented industries best. Owners of smaller firms can sell to a platform and often stay on.](https://capstreet.multisites.ai/buy-and-build-strategy) - [Construction technology private equity for software ownersCapstreet believes technology can drive large changes in construction efficiency and project delivery. It targets software businesses that support project and financial management for general contractors and sub-contractors. The firm sees the industry as early on its technology adoption curve and looks for owners with $3 to $15 million of EBITDA.](https://capstreet.multisites.ai/industries/construction) - [Capstreet deal criteria: the companies we look forCapstreet looks for entrepreneur-owned business services companies with $3 to $15 million of EBITDA. We make primarily majority investments, and entrepreneurs reinvest alongside Capstreet. We want a tenured team, solid financials, a defensive business model, untapped growth potential and a niche advantage. We invest across 12 industries.](https://capstreet.multisites.ai/deal-criteria) - [The due diligence checklist for owners selling to private equityDue diligence is the buyer's check of your business after you sign a letter of intent. Private equity firms review five areas: financial (quality of earnings), operations, tax, HR and benefits, and legal. Owners who gather clean records before the process starts shorten it and face fewer surprises.](https://capstreet.multisites.ai/guides/due-diligence-checklist-for-owners) ## Ready to get started? Let’s talk. Tell us about your company and what you want next. Conversations are private, and there is no obligation. [Start a conversation](https://capstreet.multisites.ai/contact) [(713) 332-2700](tel:+1-713-332-2700)[connect@capstreet.com](mailto:connect@capstreet.com) ![Capstreet team members at a Houston elementary school for Houston Reads Day](https://capstreet.multisites.ai/_astro/houston-reads-day.DxNd9bIr_tggWP.webp)