Lone Star Investment Advisors has recapitalized State Service Co., a provider of engineering, procurement, and construction service. Details of the recap were not released. GulfStar Group served as the exclusive financial advisor to State Service.
GulfStar Group is pleased to announce the recapitalization of State Service Co., Inc. (“SSCI” or the “Company”) by Lone Star Investment Advisors (“Lone Star”). GulfStar Group served as the exclusive financial advisor to SSCI throughout the transaction, which closed on March 16, 2012. The Company’s legal advisor was BoyarMiller of Houston, Texas. Lone Star’s legal advisor was Baker & McKenzie LLC. Comerica Bank provided a stand-by line of credit for SSCI’s future use.
Located in Katy and Ingleside, Texas, SSCI is a leading provider of engineering, procurement, and construction service offerings to the oil and gas production industry, primarily engaged in the construction of oil and gas production facilities for the worldwide offshore market. From its strategically-located manufacturing facility in Ingleside, Texas, the Company executes major projects through its ability to deliver high quality, customized solutions to exploration and production companies. SSCI’s one-stop, turnkey design, fabrication and construction services distinguish it as one of the leading providers in its industry.
“We look forward to beginning another chapter in SSCI’s long history of serving the oil and gas community, utilizing Lone Star’s financial strength and experience to capitalize on new opportunities,” said Jeff Little, Vice President of SSCI.
Lone Star’s transaction team included Managing Partner Arthur Hollingsworth, and Senior Associate Bryan Grabowsky. “Lone Star is particularly proud of partnering with SSCI’s senior management, Rusty and Jeff Little, who represent the third generation of their family to successfully build this fine Company,” said Arthur Hollingsworth. “SSCI’s successful niche of providing turnkey engineering, construction, and installation to shallow water oil and gas production platforms for the Gulf of Mexico and beyond is a tribute to Rusty and Jeff’s exceptional leadership. We also appreciate GulfStar’s contribution to a successful transaction. Their deep industry knowledge was very useful in helping all parties produce the optimal end result to this successful transaction.”
The GulfStar Group transaction team included Managing Director Colt Luedde, Managing Director Tom Hargrove, Vice President Chris Coonfield, Associate Jay Stone and Analyst Kristie Ganss. “SSCI has built a stellar reputation as one of the premier fabrication companies servicing the Gulf of Mexico market. I believe the addition of Lone Star’s experience in growing companies will help SSCI expand into additional markets,” said Tom Hargrove.
About Lone Star
Lone Star Investment Advisors is a Dallas-based private equity firm with over $360 million of assets under management that specializes in acquisitions and recapitalizations of strategically viable, middle-market businesses with strong potential for growth. The firm invests in a wide variety of industry sectors including manufacturing, distribution, energy/utilities, industrial and business services. Lone Star specializes in investments that will create employment opportunities in the communities in which they are located, and maintain a strong reputation for driving economic growth in low income areas.
GulfStar Group is a leading middle market investment and merchant bank headquartered in Houston, Texas, with a strong market presence in Austin, Dallas, Louisiana and Oklahoma. GulfStar specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, restructuring and turnaround advisory services and general corporate finance advisory services to companies with revenue or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed over 550 transactions in more than 30 states and seven foreign countries across a variety of industries. Through its merchant banking affiliate, the firm also makes equity and subordinated debt co-investments.