News

DTK, Inc. Recapitalized by a Private Investor Group

HOUSTON, TEXAS (March 12, 2018) – Statesman Corporate Finance, LLC (“Statesman”) is pleased to announce that its client DTK, Inc. (“DTK”), has been recapitalized by a Private Investor Group. Statesman served as the exclusive financial advisor to DTK throughout the transaction that closed on February 15, 2018.

DTK, founded in 1996 and headquartered in Houston, is a specialized facility services provider serving the niche market segments of churches, private schools, and athletic clubs, in addition to traditional commercial buildings and complexes. DTK is one of the leading independent janitorial and facility services providers in Texas, and the premier provider to the niche end markets it serves. Today, DTK provides services at over 1,000 locations, employs nearly 800 people, and has expanded its reach to four additional states beyond Texas. In 2014, DTK acquired Superior Sanitation, Inc. (“SSI”) of Dallas, which gave DTK a solid presence in the north Texas market and also brought a strong competency in the grocery floor and counter care space. SSI operates as a wholly-owned subsidiary of DTK.  

DTK is poised for continued growth and the recapitalization will allow management to accelerate that objective through greater access to capital and leveraging investor relationships. DTK was recapitalized by a private investor group led by Ryan Bishop, a successful Houston real estate and business professional, with strong connections to property owners and managers throughout Texas. Commenting on the transaction, DTK’s founder, Trey Vick said “I am very pleased to begin the leadership transition to Ryan and to assist in the exciting growth and continued development of the business Ryan and his investors envision. Ryan understands our unique customer base and his commitment to DTK’s core values of integrity, honesty, respect, value, and dependability were key considerations in choosing who we should partner with. Ryan is committed to maintaining our unique culture and building upon the trust and confidence our many long-term clients have placed in us. Additionally, we greatly enjoyed working with the Statesman team who helped us to fully evaluate our options and whose consultation was instrumental in getting a favorable transaction for all the DTK constituents.”

 

About the other transaction participants

Statesman Corporate Finance, LLC  (Houston, TX) served as exclusive financial advisor to DTK, Inc. on 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, and Vice President Peter Chiu.

The Private Investor Group is led by Ryan Bishop, a successful Houston real estate and business professional, with strong connections to property owners and managers throughout Texas.  Ryan was formerly Executive Vice President of Stream Realty.

Legal counsel for DTK was Robert Beasley of Weycer, Kaplan, Pulaski & Zuber, P.C. and tax / accounting advice was provided by Matt Aycock, CPA and Jason George, CPA of Aycock & Company, PC.

Legal counsel for the buyer was Ricky Torlincasi and Andrew Rosell of Winstead, PC.

Ideal Electric Company Acquired from Hyundai Heavy Industries Co., Ltd. by an Affiliate of Gulf Electroquip, Ltd.

HOUSTON, TEXAS / MANSFIELD, OHIO (SEPTEMBER 14, 2017)  Statesman Corporate Finance, LLC (“Statesman”) is pleased to announce that Ideal Electric Company (“Ideal Electric” or the Company), formerly owned by Hyundai Heavy Industries Co., Ltd. of South Korea, has been acquired by a privately held affiliate of Gulf Electroquip, Ltd. (“Gulf Electroquip”) of Houston, Texas.

The purchase of Ideal Electric brings the 114-year-old business back into private hands and allows for all options to be on the table as the Company is re-imaged in the globally competitive marketplace. Ideal Electric is an established American manufacturer of electric motors and generators, switchgear, and control systems for a broad number of applications including industrial, oil, gas and petrochemical, water and infrastructure, pulp and paper, air handling, marine, mining, power generation and renewable energy. The new Company’s leadership team, led by entrepreneurs George Jackson, James Petersen, Jr. and Nicholas Phillips, is headquartered in Houston, Texas.

“We are incredibly honored to have this opportunity to renew and extend Ideal Electric’s service to hundreds of marquee customers around the world,” said Jim Petersen, Jr., President of Gulf Electroquip. “As the 3rd generation of a family electric machinery manufacturer, and an electrical engineer myself, I’ve known of, and respected Ideal Electric’s market leadership in strong equipment. The Company’s engineering, designs, facility, technology and good team are available to support our clients and extend Ideal Electric into a brighter future. We are all looking forward to this new venture in Ohio and to being a positive member of the community in Mansfield as we roll up our sleeves and get back to work serving the loyal customers of Ideal Electric,” added Petersen.

Gulf Electroquip is a Houston, TX based ISO 9001 manufacturer of new electrical motors and generators, as well as a preferred repair facility for many well known global manufacturers. Gulf Electroquip has complete in-house machining capabilities and parts support, and has one of the largest testing facilities in North America.

“The industry has admired the Ideal Electric name and the robustness of the products for more than a century,” said Nicholas Phillips – Leadership Team Member, “We intend to fully support legacy products through a renewed focus on service, parts and repair, while also expanding our product offering with innovative technologies and new commercial partnerships,” added Phillips

About the other transaction participants

Statesman Corporate Finance, LLC (Houston, TX) served as exclusive financial advisor to Gulf Electroquip, LP / Heartland Power Investment Group, LLC on 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, Vice President Peter Chiu, and VP – Machinery & Equipment, Scott McClain.

Bracewell LLP (Houston, TX), a leading law and government relations firm primarily serving th energy, finance and technology industries throughout the world, provided legal counsel to Gulf Electroquip, Ltd. / Heartland Power Investment Group, LLC.

McCarthy, Lebit, Crystal & Liffman Co., LPA (Cleveland, OH) provided legal counsel to Hyundai Heavy Industries Co. Ltd. (Seoul, South Korea) and Hyundai Ideal Electric Co. (Mansfield, OH)

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.

TRCG Advisors, LLC acquired by Alvarez & Marsal Taxand, LLC

HOUSTON, TEXAS (January 12, 2018) – Statesman Corporate Finance, LLC (“Statesman”) is pleased to announce that TRCG Advisors, LLC (“TRCG”), has been acquired by Alvarez & Marsal Taxand, LLC (“A&M Taxand”), an affiliate of the leading global professional services firm Alvarez & Marsal.

TRCG was founded in 2009 to advise small to mid-market companies in planning and claiming specialized tax credits and incentives – namely federal and state Research & Development Tax Credits, Cost Segregation Studies, 179D projects, and other tax incentive projects.  Since then, TRCG developed a sterling reputation for integrity, client service, and technical expertise.

Poised and eager for geographic and market growth, TRCG management looks forward to joining A&M Taxand’s Research Credits & Incentives Services (RCIS) group. Thirteen TRCG professionals will become part of the A&M Taxand team, with two of the original TRCG owners and founders – Tomas Nally and Andrew Murrell – joining the team as Managing Directors.

Commenting on the process, Tomas Nally of TRCG said, “From the beginning, the Statesman team made a dedicated effort to understand TRCG’s business model and value proposition, and successfully communicated them to potential buyers.  Throughout the process, Statesman provided us with valuable insight and guidance, culminating in a smooth and successful closing.”

About the other transaction participants

Statesman Corporate Finance, LLC  (Houston, TX) served as exclusive financial advisor to TRCG Advisors, LLC on 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, Vice President Sirena Conkright, Vice President Peter Chiu, and Analyst Philip Rodgriguez.

Alvarez & Marsal Taxand, LLC is an independent tax group made up of experienced tax professionals dedicated to providing customized tax advice to clients and investors across a broad range of industries.  Its professionals extend A&M’s commitment to offering clients a choice in advisors who are free from audit-based conflicts of interest, and bring an unyielding commitment to delivering responsive client service.  A&M Taxand has offices in major metropolitan markets throughout the U.S., and serves the U.K. from its base in London.  A&M Taxand is an affiliate of Alvarez & Marsal, a privately-held leading global professional services firm that provides advisory, business performance improvement and turnaround management services.

Legal counsel to Alvarez & Marsal was provided by Gunster (Miami, FL), led by attorney and shareholder Maria Acevedo-Belt and attorney Stacie Townsend; and Brian Belt of Brian Belt Law (Miami, FL).

Legal counsel to TRCG was provided by BoyarMiller (Houston, TX), led by attorney and shareholder Larry Wilson.

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.