FABco, LLC Has Been Recapitalized by Argonaut Private Equity
13.09.2021
HOUSTON, TEXAS (September 13, 2021) – Statesman Corporate Finance, LLC (“Statesman”) is pleased to announce the majority recapitalization of FABco, LLC (“FABco” and/or “the Company”), by Argonaut Private Equity (“Argonaut”). Statesman served as the exclusive sell-side financial advisor to FABco on the transaction.
FABco was founded in 2010 as a single-site rebar fabrication plant in Houston, Texas. The Company has since expanded to five fabrication plants and four construction supply centers across Texas, Utah, and Colorado. The Company fabricates and installs rebar to uniquely engineered specifications for industrial, municipal, and commercial construction projects, and sells other concrete construction materials/supplies from “store-front” supplies centers adjacent to its fabrication plants. FABco serves a growing base of over 600 contractors, builders, and EPC firms.
Mark Paul, FABco CFO and one of the three founding shareholders, said “Statesman’s guidance and services were invaluable to us throughout this process. This is a critical transition period, going from the three founding brothers to bringing in outside partners. Statesman conducted a broad marketing process which created the opportunity for us to meet with both strategic acquirers and private equity groups. The process was enlightening and crystalized our understanding on the direction we wanted to go. We are extremely excited about continuing to grow the business in partnership with Argonaut.”Kelby Hagar, President of Argonaut, commented, “We are very excited to be partnering with the Paul brothers and working in concert with them to support the expansion of FABco. It quickly became clear they were excellent operators, thought strategically, and had identified a growth strategy that was easy for us to get behind. This is the ideal entry point for Argonaut being the first institutional investors in a rapidly growing business.”
About the other transaction participants
Statesman Corporate Finance, LLC (Houston & Austin, TX) 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 team advising on this engagement was led by Walter Tomlinson, Principal, and included Gary Canon, Director, David Carrasco, Vice President, and Nathan Hurst, Associate.
Argonaut Private Equity (Tulsa, OK) is a Tulsa-based private equity firm with $3 billion of capital deployed in direct investments across key industry sectors including manufacturing, industrials and energy services. Argonaut partners with companies to develop a strategy for accelerating growth and enhancing operations. The Argonaut team on this transaction was led by Kelby Hagar, President, Chong Wang, Vice President, and included Brandon Lenhart and Michael Farr.
Winston & Strawn LLP (Dallas, TX) provided legal counsel to FABco led by Partner, David Lange, and Associate, Miles McDougal.
Briggs and Veselka Co. (Houston, TX) provided tax and accounting advisory to FABco led by Jason Sanders, Partner, and Sid Shaver, Senior Managing Director.
Frederic Dorwart Lawyers, PLLC (Tulsa, OK) provided legal counsel to Argonaut led by Stephen Johnson, Amanda Lovelace and Jake Calvani.
