GHK Capital Partners has recapitalized Brown & Settle Inc, a provider of large-parcel site development services. No financial terms were disclosed. William Blair, Weil, Gotshal & Manges LLP, and Configure Partners advised GHK and B&S on the transaction.
GREENWICH, Conn., March 1, 2021 /PRNewswire/ — GHK Capital Partners LP (“GHK”), a Greenwich, Connecticut-based private equity firm pursuing control investments within the industrials sector, announced today that it completed the recapitalization (“the Recapitalization”) of Brown & Settle, Inc. (“B&S” or the “Company”). The Recapitalization valuation represents a greater than ten times gross return on investment for GHK and its investors, with gross cash realizations to date in excess of seven times the initial investment in the Company made less than two years ago. Pro forma for the Recapitalization, existing shareholders continue to own greater than 80% of the Company.
Founded in 2003, Brown & Settle, Inc. is the leading provider of large-parcel site development services, primarily to the data center market, in the Virginia, Maryland, West Virginia, and Greater Washington D.C. areas.
GHK acquired B&S from its founders in 2019. During their ownership, B&S has successfully completed a series of transformational growth and operational initiatives, including significant investments in the Company’s management team, sales organization, and internal systems, resulting in an organic revenue CAGR of nearly 40%.
Mike Brown, current President and Co-Founder of the Company, said, “As I look back over the last two years of our partnership with GHK, I’m extremely proud of everything we have accomplished together. GHK has helped us to radically accelerate and scale our business, unlocking a tremendous amount of growth and expansion of our service and customer base.”
Chris Kete, Chief Executive Officer of B&S, added “The GHK team has been an ideal partner to B&S. Their hands-on engagement, as well as the knowledge and experience of their team, enabled us to accelerate the transformation of the Company. We are thankful for their tremendous support and excited to continue our partnership with them going forward.”
In reference to GHK’s investment, Gil Klemann, Founder & Managing Partner of GHK, said, “The success of GHK’s investment in B&S demonstrates our ability to identify proprietary opportunities, establish meaningful partnerships with managers and founders, and execute on transformative organic growth initiatives. We look forward to the continued partnership with B&S.”
William Blair, Weil, Gotshal & Manges LLP, and Configure Partners advised GHK and the Company on the Recapitalization.
About Brown & Settle, Inc.
Brown & Settle, Inc. is a full-service large-parcel site development provider of services including excavation, clearing, rock blasting, demolition, recycling, paving, and utility installation in Virginia, Maryland, West Virginia, and the Greater Washington D.C. area. The company was founded in 2003 by Michael Brown, Jr. and Gregory “Tommy” Settle on the principals of quality, reliability and business ethics. The company takes great pride in the dedication to success it brings to every project, regardless of size or scope of work. To learn more about B&S visit https://brown-settle.com or watch the B&S Corporate Video.
About GHK Capital Partners LP
GHK Capital Partners LP, based in Greenwich, Connecticut, is a private equity firm pursuing investments in the industrials sector. GHK partners with experienced and capable management teams that can benefit from additional resources and strategic support brought by GHK to drive transformational earnings growth and investment returns.