Houston, Texas | April 2, 2008
Freestone Partners, LLC has partnered with company management to acquire Sunbelt Steel Texas, Inc. for an undisclosed sum.
Sunbelt Steel Texas is a manufacturer of drill collars and a value-added distributor of steel round bar, specializing in high-performance alloy grades and machining services. The companys primary end-user market is oil and gas drilling, where steel round bar is used to manufacture drill collars heavy-wall pipe installed just above the drill bit to exert weight on the bit to speed drilling. Sunbelt is distinguished by high-caliber management, strong relationships with premier steel mills, an array of value-added services and a robust inventory. Mike Kowalski, Chief Executive Officer of Sunbelt Steel and one of the three key managers participating in the investment commented, We are pleased to partner with Freestone in this transaction. We believe that the Freestone team brings a lot to the table in terms of strategy, marketing and financial strength.
In addition, the board of Sunbelt Steel has appointed Russell Ginn as Non-Executive Chairman. Mr. Ginn has a strong background as CEO of manufacturing companies serving the energy industry. Most recently, he was CEO of The Flexitallic Group, a gasket manufacturer that was acquired by a European entity in 2007.
George Clark of Freestone Partners commented, Sunbelt Steel is an outstanding company with first-rate suppliers and customers as well as a highly-capable and dedicated management team. They are a welcome addition to and a sound fit with our portfolio.
Lenders providing financing for the transaction include PNC Bank and Stonehenge Capital.
Headquartered in Houston, Texas, Freestone focuses on investments in companies with $10-$50 million in annual revenue and potential for substantial growth. Freestone principally targets companies in manufacturing, distribution, and commercial services.
For more information, call Amy Glass at 281-731-9139 or visit Freestone Partners online at www.freestonepartners.com.