Freestone Partners, LLC is pleased to announce a recapitalization of Cyclone Steel Services, LLC in partnership with management. The recapitalization significantly improves the company’s capital structure and provides new liquidity in the form of additional equity capital provided by Freestone and the former owner of Cyclone and a new revolving line of credit provided by Amerisource Business Capital.
Cyclone Steel Services is a value-added processor of steel plate with a reputation for quality, reliability, and traceability of flame-cut steel plate processing services to the oil and gas, petrochemical and other end markets. Located in Houston, Texas, Cyclone stocks a variety of steel plate grades in a range of thicknesses. The company custom cuts, bends, rolls, welds, and machines steel plate ranging in thickness from 3/16” to 16”, lengths up to 58’, and widths up to 16’.
Charles Kott, Chief Executive Officer of Cyclone, commented “We are excited to have completed this recapitalization of the company. The access to additional financial resources will allow the company to expand inventory and support our outstanding customers and vendors. With this recapitalization in place, our outlook for 2021 and beyond is strong.” Mr. Kott and his team have positioned the company for growth after the challenges presented by an unprecedented business environment in 2020.
Russell Ginn continues to serve as the company’s Vice-Chairman and Lead Director. Mr. Ginn has a strong background as CEO of manufacturing companies serving the energy industry. He was CEO of The Flexitallic Group, a global industrial gasket manufacturer that was acquired by a European entity in 2007. Mr. Ginn has served as Chairman of other Freestone portfolio companies since 2008.
Headquartered in Houston, Texas, Freestone Partners invests in companies with $10 to $50 million in annual revenue and the potential for substantial growth. Freestone seeks to partner with management teams and/or selling owners to help small to medium-sized businesses achieve their growth goals. Freestone’s investment philosophy states that value is created by focusing on a few fundamentals: a sound investment process, solid management, viable business strategies, and outstanding operating execution. We value more than the transaction – we value the people involved.