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November 6, 2015
CHS Capital Completes Sale of KHC Holdings, Inc.

Chicago-based private equity firm CHS Capital™ has completed the sale of KHC Holdings, Inc. (“Kele”), a portfolio investment of CHS Private Equity V LP, to Snow Phipps II, L.P. Headquartered in Memphis, Tennessee, Kele is a leading catalog-based distributor of peripherals and sensors to control climate, lighting and access within building automation systems. CHS invested in Kele in November 2007.

CHS worked closely with management to realign the company’s sales and marketing strategy and complete enhancements to the CRM, catalog management software and website. CHS and management also worked together to upgrade the distribution center and improve supply chain efficiency. These efforts resulted in accelerated growth in both revenue and profits. “We had a great partnership with Tim Vargo and the Kele management team,” said Dave Hawkins, Partner at CHS Capital. “Through targeted initiatives, we collectively transformed the company into a sophisticated, metrics-based business that is positioned for continued growth.”

“As the premier catalog supplier in our space, we needed a partner with a deep understanding of our industry and the unique sales and marketing challenges we face,” said Tim Vargo, CEO of Kele. “CHS’ distribution knowledge and growth-focused expertise truly helped to elevate our business to the next level.”

Houlihan Lokey served as financial advisor to Kele, and Kirkland & Ellis LLP served as its legal advisor. Weil, Gotshal & Manges LLP served as legal counsel to Snow Phipps.

Headquartered in Memphis, Tennessee, Kele provides peripheral products and services to the building automation systems industry. Kele’s product offering includes thousands of interface products, including sensors, transmitters, sensors, switches, gauges and relays from over 300 suppliers. The company’s products can be integrated into pre-existing, new construction and retrofit systems. In addition to having a robust product offering, Kele provides value-added services including custom panel assembly, tagging and kitting, calibration and programming, and other assemblies. For additional information, please visit www.kele.com.

CHS Capital is a Chicago-based private equity firm with over 25 years of experience investing in the middle market. Through partnerships with strong management teams, CHS Capital aims to accelerate earnings growth and drive value creation through human capital initiatives, performance improvement actions and strategic growth activities. Throughout its history, CHS Capital has made investments in over 400 businesses and invested $2.9 billion of capital. For additional information, please visit www.chsonline.com.

Snow Phipps is a private equity firm focused on middle-market control investments. With $1.5 billion of assets currently under management, Snow Phipps targets platform companies with enterprise values ranging from $100 million to $500 million. The firm utilizes an operating partner model to invest across select industries and seek value creation through an operationally focused strategy. To learn more about Snow Phipps, visit www.snowphipps.com.