News

Statesman Advises XtraLight Manufacturing, Ltd. in Chapter 11 Reorganization

HOUSTON, TEXAS (September 28, 2018) – Statesman Corporate Finance, LLC (“Statesman”) and SSG Capital Advisors (“SSG”) acted as co- investment bankers to XtraLight Manufacturing, Ltd. (“XtraLight” and/or the “Company”) in the placement of exit financing and restructuring pursuant to a Chapter 11 Plan of Reorganization (the “Plan”) in the U.S. Bankruptcy Court for the Southern District of Texas. The Plan was confirmed and became effective in September 2018.

Founded in 1986 and headquartered in Houston, Texas, XtraLight is an established designer, manufacturer, distributor, and installer of high-performance, energy efficient light emitting diode (“LED”) lighting platforms for both interior and exterior commercial and industrial applications. The products are targeted for applications in several market segments including commercial office and retail, outdoor area lighting, industrial, education, and healthcare applications.

XtraLight filed voluntary Chapter 11 in April, 2018 as the result of litigation that an affiliated entity was involved in, and not as the result of troubled financial performance.  Management determined that a voluntary bankruptcy filing was the best way to bring resolution to a very expensive and distracting matter.  Statesman and SSG were retained shortly after the Company’s filing and assisted the Company in arranging new financing sufficient in amount to fully resolve the litigation, refinance existing debt, and pay all unsecured creditors. Statesman and SSG’s ability to solicit interest from several lenders in an efficient and timely process enabled the Company to maximize value, preserve jobs, maintain the loyalty of vendors and customers, and exit bankruptcy in five months. Unlike many commercial bankruptcies, XtraLight was able to avoid a liquidation or sale of its assets at depressed values and achieve a true Chapter 11 reorganization with new exit financing.

Statesman 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 Associate Philip Rodriguez.

SSG’s professionals have been helping middle market companies and their stakeholders in special situation transactions for over two decades. As a nationally recognized boutique investment banking firm specializing in mergers and acquisitions, restructurings, and private placements. SSG has become the go-to firm for companies facing complex or challenging situations including operational, financial and/or legal challenges and turnarounds, inside and outside of Chapter 11 proceedings. SSG is headquartered in Philadelphia with an office in New York City. The SSG team advising on this engagement included Managing Director Matthew Karlson and Managing Director Mark Chesen.

Texas Capital Bank (TCBI) is a commercial banking institution established in 1998 and headquartered in Dallas, Texas. The bank provides personalized financial services to businesses and individual clients across Texas. The bank’s service areas include business banking, wealth management, private banking, online banking, personal banking, treasury and liquidity, and mortgage business finance. Texas Capital Bank’s business services division offers services in areas of commercial account information, commercial real estate, energy industry banking, financial institutions, financial services for employees. TCBI also offers healthcare banking, investments, leasing, lender finance, equipment financing, term loans, asset-based lending, property management, and SBA lending among others. Texas Capital Bank operates as a wholly owned subsidiary of Texas Capital Bancshares. Texas Capital Bank provided the subject refinancing and Cody Cannon, Senior Vice President serves as relationship manager on the Company’s account.

About the other transaction participants

Legal counsel for XtraLight was Deirdre C. Brown and Melissa A. Haselden with HooverSlovacek, LLP.

Personal counsel to XtraLight’s President was Christopher Murray with Diamond McCarthy LLP.

Legal counsel for Texas Capital Bank was Lynn ButlerReuben D. Rosof and Caleb Rush with Husch Blackwell LLP.

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)

Jessica Seff, CFA Joins Statesman’s Investment Banking Group

HOUSTON, TEXAS (May 9, 2018) – Statesman is pleased to announce that Jessica Seff has joined the firm’s Investment Banking group as Vice President to assist clients in Mergers & Acquisitions, Capital Sourcing, Restructuring, and general Corporate Advisory matters.

“We are delighted to welcome Jessica to Statesman as a valued member of our senior Investment Banking team,” said Will Jaco, Principal and Co-Head of Investment Banking at Statesman. “Jessica has a tremendous background that spans a broad range of activities including investment banking with Lehman Brothers, structured finance with Shell Trading, and recently Director of Finance with a large non-profit entity.  She holds the coveted CFA designation, and she collaborates extensively with the CFA Institute and the CFA Society of Houston.  We look forward to getting Jessica involved in our active middle-market deal flow and leveraging her strong analytical and strategic thinking skills to further our client’s corporate finance objectives”.

“I am thrilled to be joining the team,” said Jessica.  “Statesman has an excellent reputation for serving the needs of the middle market, and I believe the company is well positioned for continued growth.  I’m looking forward to assisting in building Statesman’s investment banking platform for privately held companies.”

Jessica received her B.B.A. from Vanderbilt University, graduating Magna Cum Laude, and her Master’s degree from The London School of Economics.  She is married and has two children, ages 2 and 4, and will work in Statesman’s Houston office.

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.