News

International Liquidation, Inc. has been Acquired by Ah-Tiem Holdings & Subsidiary, Inc.

AUSTIN, TEXAS (JULY 18, 2017)  Statesman Corporate Finance, LLC (“Statesman”) is pleased to announce that International Liquidation, Inc. has been acquired by Ah-Tiem Holdings & Subsidiary, Inc.

About the Transaction Participants 

International Liquidation, Inc., established in 1993, is one of the nation’s largest and most respected wholesalers of closeout merchandise. The company’s focus is the acquisition of diverse inventories, made available due to overstocks, product line changes, cancelled orders, competitive buybacks, or irregulars/seconds. International Liquidation sells these products to a broad domestic and international customer base consisting of over 1,000 customers from deep discount chains, independent closeout stores, dollar stores, drug, grocery and sporting goods chains, and salvage retailers.

Ah-Tiem Holdings & Subsidiary, Inc. is a Texas-based private investment company focused on the acquisition of profitable businesses.

Statesman Corporate Finance, LLC advised International Liquidation, Inc. and is the FINRA licensed broker dealer affiliate of Statesman Business Advisors, LLC. With offices in Houston and Austin, Texas, Statesman is a leading middle-market investment banking firm providing merger and acquisition, capital formation, valuation and other general corporate financial advisory services to middle-market companies. The Statesman team advising on this engagement included Managing Director Lawrence (Larry) Schumann.

Gulf Publishing Company Acquires 109 Year-Old Oildom Publishing of Texas

HOUSTON, TEXAS (MAY 1, 2017)Statesman Corporate Finance, LLC (“Statesman”) is pleased to announce that Oildom Publishing of Texas, Inc. (“Oildom”) has been acquired by Gulf Publishing Company (“Gulf Publishing”), which when combined makes Gulf Publishing the world’s largest independent media company devoted exclusively to the international energy industry.

Oildom, founded in 1908 by Oliver C. Klinger, grandfather of Oliver Klinger III, the owner and President of Oildom prior to the acquisition, is the parent corporation and publisher of three prominent monthly trade magazines targeting the midstream energy and utility rehabilitation markets; Pipeline and Gas Journal, Pipeline News, and Underground Construction. Gulf’s acquisition also includes Oildom’s two industry-leading conferences Pipeline Opportunities Conference and Underground Construction Technology. Oildom is based in Houston, Texas with readers and circulation of its journals world-wide.

Commenting on the transaction, Oliver Klinger III said, “My main objective in transitioning ownership of Oildom is to ensure the continuation of the legacy started by my grandfather 109 years ago. With Gulf Publishing Company, we have found a capable and knowledgeable home for our employees, readers and advertisers.”

John Royall, president and CEO of Gulf Publishing said of the transaction “The addition of Oildom is part of our strategic plan to expand as the leading provider of business and technical knowledge in the global oil and gas industry. Oildom’s people, products and services are an excellent complement to our organization as they now extend our global leadership position to the midstream and utility sectors.”

About the Transaction Participants

Statesman Corporate Finance, LLC advised Oildom Publishing of Texas in this transaction and is the FINRA licensed broker dealer affiliate of Statesman Business Advisors, LLC. With offices in Houston and Austin, Texas, Statesman is a leading middle-market investment banking firm providing merger and acquisition, capital formation, valuation and other general corporate financial advisory services to middle-market companies. The Statesman team advising on this engagement included Principal Walter Tomlinson and Managing Directors Lee McFarlain and Jim Briggs.

Gulf Publishing Company, founded in 1916, produces and distributes leading trade journals, industry research, databases, software, publications, conferences and events designed for the needs of the energy industry. Gulf’s flagship publications include World Oil, Hydrocarbon Processing, Petroleum Economist and Gas Processing. Gulf is headquartered in Houston, TX and has offices throughout the world. In 2016, Gulf Publishing Company’s President and CEO John Royall and Houston investor Russell Denson led a management buyout, partnering with Main Street Capital Corporation, and acquired Gulf Publishing from its London based parent Euromoney Institutional Investor PLC.

Main Street Capital Corporation (NYSE: MAIN) is a principal investment firm that provides long-term debt and equity capital to lower middle market companies supporting management buyouts, recapitalizations, growth financings and acquisitions of companies that operate in diverse industry sectors and generally having annual revenues between $10 million and $150 million. The Main Street team leading the financing for this transaction included Dwayne Hyzak, President, Alejandro Capetillo, Director, and Dylan White, Analyst.

Cavett, Turner & Wybel, L.L.P., (Beaumont, TX) provided tax and accounting advisory services to Oildom led by Partner Larry A. Turner, CPA, CPC, and general business advisory services by Steve A. Molnar.

Porter Hedges LLP (Houston, TX) provided legal counsel to Oildom led by Kevin J. Poli, Partner, Craig M. Bergez, Partner, and Adam K. Nalley, Associate.

Locke Lord LLP (Houston, TX) provided legal counsel to Gulf and Main Street led by Greg Heath, Partner, and Jeannie Diep, Associate.

BK Corrosion, a division of Integrated Corrosion Companies, has been acquired by Enemtech Capital and members of BK Management

HOUSTON, TEXAS (December 9, 2016)Statesman Corporate Finance, LLC is pleased to announce that BK Corrosion (“BK” or the “Company”), a division of Integrated Corrosion Companies (“ICC”) has been acquired by Enemtech Capital (“Enemtech”) and members of BK Management, including BK President, Brent Bertrand, and Vice President of Business Development, Robert Adams. The transaction was completed on December 2, 2016. BK Corrosion is one of the longest established value-added distributors of cathodic protection products used in the control and monitoring of corrosion on metallic structures across the upstream, midstream, and downstream oil and gas segments, and in the municipal and utility sectors. BK’s main office, warehouse and assembly facilities are located in Houston, TX, with stocking branch locations in Midland, TX and Denver, CO.

Founded in 1925 as the Brance-Krachy Co., Inc., the corrosion products assembly and distribution division was rebranded as BK Corrosion subsequent to an acquisition of the Brance-Krachy Co. in 2014 and the consolidation of all its divisions into ICC. In 2016, ICC offered to spin off BK Corrosion to Management. Brent Bertrand led Management’s efforts to acquire BK and was advised by Statesman, who also introduced Management to Enemtech. On completing the transaction, Bertrand commented, “We are absolutely thrilled with the support Enemtech provided in the acquisition of BK and look forward to gaining their experience to help us continue to grow the business both domestically and internationally.”

About Transaction Participants

Enemtech Capital is a Houston-based family office led by Mahesh Desai, founder of Virgo Engineers, a leading valve manufacturer which grew to a global organization with revenues exceeding $300 million, 1,800 employees, manufacturing plants on 3 continents, and customers in 72 countries before being acquired by Emerson in 2013. The Enemtech team, which also includes Rajesh Walawalker, provides not only capital to execute transactions, but also significant domestic and international operational expertise to support and develop growth strategies on a worldwide basis.

Integrated Corrosion Companies was formed in 2014 after the acquisition of the Brance-Krachy Co., Inc. by Jesse Marion and the consolidation of its divisions into the Integrated Corrosion Companies. The remaining ICC divisions provide corrosion control engineering, consulting, project management, specialty products and off shore services.

Statesman Corporate Finance, LLC is the FINRA licensed broker dealer arm of Statesman Business Advisors and advised both Management and Enemtech Capital in this transaction. Statesman, with offices in Houston and Austin, Texas, is a leading middle-market investment bank providing merger and acquisition and general corporate financial advisory services to middle-market companies. The Statesman team advising on this engagement included Walter Tomlinson, Will Jaco, Jim Briggs, and Lee McFarlain.

Frost Bank provided acquisition financing to Enemtech and Management led by Houston Market President Mike Aubuchon and Sr. Vice President, Jack Doherty.

Andrews Myers provided legal counsel to the Buyers led by attorneys Patrick Hayes, Shareholder, and Brenton Pharis, Sr. Counsel.

Boyar Miller provided legal counsel to the Sellers led by attorneys and shareholders Gary Miller and Larry Wilson.

Action Gypsum Supply Acquires a Majority Share of Argos Material Distribution

HOUSTON, TEXAS (JUNE 19, 2017) – Statesman Corporate Finance, LLC (“Statesman”) is pleased to announce that Action Gypsum Supply, LP (“Action Gypsum”) has acquired a majority interest of ARGOS Material Distribution, LP (“ARGOS”) comprising two locations in Southern California and a newly opened location in Phoenix, AZ. ARGOS’ founders, Al and Tom Jordan, will retain a minority share and continue to manage the company’s operations.

Acquiring a majority interest in ARGOS allows Action Gypsum to expand its presence further west increasing its locations to 11 in total, with 8 in Texas, 2 in California, and 1 in Arizona. As more and more independent building materials distributors throughout the United States become acquired by large corporate entities, this strategic move reinforces both Action Gypsum’s and ARGOS’s positions as dominant, independent leaders in each of their respective markets.

“We couldn’t be more excited to partner with such a reputable company like Action Gypsum. Both companies share similar beliefs in company culture and approach to local markets with specific priority given to employees, customers, and supplier partners. I’m confident this will be a profoundly successful endeavor while maintaining our competitive advantage as a strong independent company.” – Al and Tom Jordan

“Al and Tom have assembled an incredible group of people there at ARGOS. Their growth has been impressive and together we look forward to combining our growth strategies to build an even more significant independent company throughout the west.”  – Lenin Juarez and Terri King Peak

About the Transaction Participants

Statesman Corporate Finance, LLC advised Action Gypsum in this transaction and is the FINRA licensed broker dealer affiliate of Statesman Business Advisors, LLC. With offices in Houston and Austin, Texas, Statesman is a leading middle-market investment banking firm providing merger and acquisition, capital formation, valuation and other general corporate financial advisory services to middle-market companies. The Statesman team advising on this engagement included Principal Will Jaco, Managing Director Erik Konicki, and Vice President Peter Chiu.

Action Gypsum Supply, LP, headquartered in Houston, TX, is primarily engaged in the wholesale distribution of building materials including wallboard, metal framing, acoustical products, insulation, doors and frames, and related supplies. They have been in operation for fourteen years with eight branches in major markets throughout Texas. The ARGOS acquisition will expand Action’s reach west into some of the largest and fastest growing markets in the country.

ARGOS Material Distribution, LP is a family owned building materials distribution company that began in 2012 with the goal of providing its customers with the highest quality of service in the industry. ARGOS is headquartered in Chino, CA with additional locations in Long Beach, CA, and now Phoenix, AZ, which was opened earlier this year in a joint venture with Action.

Texas Capital Bank (Dallas & Houston, TX), John Roberts, EVP, led the bank group providing financing for this transaction.

Andrews Myers, PC (Houston, TX) served as legal counsel for Action Gypsum led by Senior Counsel Brent Pharis and Shareholder Patrick Hayes; Fingal, Fahrney, & Clark (Newport Beach, CA), led by Partner Stephen Fingal, provided legal counsel to ARGOS; and Jackson Walker LLP (Houston, TX) provided legal counsel for Texas Capital Bank, led by Partner Lewis Kasner.

Healthy Connections Home Care Services, Inc. has been acquired by Option Care Enterprises, Inc.

HOUSTON, TEXAS (December 14, 2016) Statesman Corporate Finance, LLC is pleased to announce that Healthy Connections Home Care Services, Inc., (“Healthy Connections”) a specialty home healthcare provider to high-risk obstetrical patients, has been acquired by Option Care Enterprises, Inc., (“Option Care”) a leading national provider of home and alternate treatment site infusion therapy. The transaction closed on October 31, 2016, and was only recently announced upon completion of final regulatory agency consents.

Founded in 1999, Healthy Connections provides an alternative to in-hospital maternity care for several conditions including gestational diabetes, pregnancy-induced hypertension, hyperemesis and management of preterm labor. Serving only the Houston and Dallas greater metropolitan areas, Healthy Connections has grown to become the second largest provider of in-home services for high risk pregnancies in the US. Commenting on the transaction, Healthy Connections Co-Founder and President Gaylynn Thomas said, “We are so excited to be joining Option Care. Their experience, capabilities and resources will greatly enhance our capability to achieve our long quested goal of expanding nationally.” Paul Mastrapa, CEO of Option Care, said, “The addition of Healthy Connections was a natural fit, with its in-home services complementing our infusion services and strategically expanding the range of treatments we offer.”

About the Transaction Participants

Option Care Enterprises, Inc., (Bannockburn, IL) was formed in 2015 when Madison Dearborn Partners, LLC acquired a majority interest in Walgreens Infusion Services and took this division private, renaming it Option Care. Walgreens maintains a significant minority interest.

With nearly 40 years of experience, Option Care is one of the nation’s largest providers of home and alternate treatment site infusion services and is considered an industry pioneer. Option Care’s broad geographic footprint includes 89 infusion pharmacies and 110 alternate treatment sites in 40 states, approximately 4,700 employees and the ability to serve more than 90 percent of the U.S. population. Its clinical personnel, including nurses, pharmacists, technicians and dieticians, treat patients who are managing a broad range of acute and chronic conditions.

Statesman Corporate Finance, LLC is the FINRA licensed broker dealer arm of Statesman Business Advisors and advised Healthy Connections in this transaction. Statesman with offices in Houston and Austin, Texas, is a leading middle-market investment bank providing merger and acquisition and general corporate financial advisory services to middle-market companies. The Statesman team advising on this engagement included Principal Walter Tomlinson, and Vice President Peter Chiu.

Boyar Miller provided legal counsel to the Seller led by shareholders Philip Dunlap and Gary Miller.

Rosen and Spears also provided legal counsel to the Seller led by Partner Marion S. Rosen.

Sidley Austin – Chicago provided legal counsel to the Buyer led by Partner Michael Heinz and Associate Emerich Gutter.

Stewart Tubular Products has been acquired by an affiliate of Aterian Investment Partners

HOUSTON, TEXAS (November 9, 2016) – Statesman Corporate Finance, LLC (“Statesman”) is pleased to announce that Stewart Tubular Products (“Stewart” or the “Company”) has been acquired by an affiliate of Aterian Investment Partners (“Aterian”). The transaction was completed on November 2, 2016.

About Transaction Participants
Stewart Tubular Products is a leading manufacturer of critical, quick-turn premium tubular accessories and threaded applications for downhole oil and gas completion activities. The acquisition fits with Aterian’s investment approach of finding strong, market leading businesses with talented management teams which Aterian can support to accelerate growth. Founder Steve Samuel will continue as Stewart’s President. Other key management members will also remain with the business. “This transaction infuses new energy and business development experience into the company and is a critical step in Stewart’s continued development. Aterian has demonstrated a track record of investing in operations and growing businesses alongside management. Aterian’s support will allow Stewart to continue providing high quality products to our existing customers, as well as pursue additional business initiatives and service offerings,” Samuel said.
Founded in 1988, Stewart manufactures products which are mission-critical to the durability and performance of a well as evidenced by their requirements and applications in high complexity and high pressure drilling environments worldwide. Stewart deploys a collaborative, solutions-oriented service model often providing turnkey solutions to major integrated oil & gas companies, as well as companies that service them. Stewart has long been recognized for its reputation in providing the highest quality product with unmatched customer satisfaction. Stewart operates from a 127,000 sq. ft., state-of-the-art, tubular accessories manufacturing facility in northwest Houston.
Aterian Investment Partners invests in industry leading, middle-market businesses generating $25 – $500 million in revenues with strong, proven franchises. Aterian’s principals possess extensive experience investing in complicated and operationally intensive situations. Their deep transactional knowledge ranges from corporate carve-outs to restructuring to pioneering strategic investments that build and enhance value for all stakeholders.
Statesman Corporate Finance, LLC is a leading middle-market investment bank with offices in Houston and Austin, Texas, providing merger and acquisition sell-side, buy-side, and general corporate financial advisory services to middle-market companies. The Statesman team managing this engagement was led by Managing Director Will Jaco and Associate Walker French.
Weil Gotshal & Manges, LLP, New York, NY, advised Aterian and Lee & Desenberg, PLLC, Houston, TX, advised Stewart.