Tech-focused L Squared Capital Partners has added the makers of Kroil lubricants to its portfolio and taken further steps to consolidate the IT managed services sectors.
Those are two of the latest moves for the Newport Beach-based private equity investment firm, which has over $2 billion in equity commitments under management.
The firm focuses on education technology, technology-enabled services and software, and industrial technology and services.
L Squared said Dec. 18 it had acquired Nashville-based Kano Laboratories, whose product line is anchored by the Kroil-branded penetrating oils and lubricants.
Kroil products are used by professionals and do-it-yourselfers to loosen rusted, corroded and frozen mechanical parts. Kano’s chemical products are used predominantly in industrial maintenance, repair and operations applications.
Just a year ago, Kano itself had acquired Bohemia, New York-based Super Lube, a maker of synthetic lubricants.
Board Member,
Netrio
Managing Partner,
L Squared Capital
$840M Fund IV
The Kano investment represents L Squared’s fourth platform investment in its Fund IV, an $840 million private equity fund that closed in April 2023.
L Squared’s Fund IV led the equity investment in Kano, along with co-investment from select L Squared limited partners, as well as participation from the Kano executive leadership team.
The purchase price for Kano was not disclosed.
Separately, in early December, L Squared announced the creation of its managed IT services platform, Netrio, through the acquisition of technology managed services provider Netrio of McKinney, Texas; Success Computer Consulting of Golden Valley, Minnesota; and PCA Technology Group of Buffalo, New York.
The combined platform is aimed at consolidating the managed IT services sectors.
Netrio will pursue a buy-and-build strategy within the “quickly evolving and highly fragmented managed” IT Services and Cybersecurity sectors, according to L Squared.
Platform Netrio Developing Capabilities
The three acquired entities give Netrio nationwide reach with offices in the Dallas, Minneapolis and Buffalo markets.
To meet its goals for Netrio, L Squared has appointed Mark Clayman as chief executive officer. Clayman previously served as chief executive officer of Navisite, a digital transformation firm based in Andover, Massachusetts.
Netrio will continue to actively search for acquisition targets of all sizes across the highly fragmented managed IT services landscape with a focus on partnering with companies that provide incremental capabilities, possess strong recurring revenue profiles and expand Netrio’s geographic footprint, according to L Squared.
Through these acquisitions, Netrio has been able to develop a unique platform with a wide array of capabilities, including core managed services, managed cybersecurity services, application development, managed connectivity and telephony solutions.
