- A “platform investment” for Altus
- CEO joins Gulfco from Ameriforge Group
- “Renewed investment in operations and customer service”
Gulf Coast Machine & Supply Company has been acquired by Altus Capital Partners II L.P., leading an ownership group that includes members of the management team at the Beaumont, TX, forger and ring roller. The value and terms of the purchase have not been announced.
“We are looking forward to a new partnership with Altus to continue the growth of the business as a result of the renewed investment in operations and customer service,” according to Dave Mackin, Gulfco president.
Altus Capital Partners is a private-equity investment group that concentrates its holdings in domestic, “lower middle market manufacturing companies.” The Gulfco acquisition is the third for its second fund, Altus Capital Partners II, L.P., which closed in October 2011 with $200 million in commitments.
Gulfco’s range of forming capabilities and the variety of carbon and specialty steel materials it processes make it capable of supplying component parts and fabricating/finishing service to the oil-and-gas industry, including subsea production facilities, refineries, hydraulic fracturing operations, and offshore rigs. It also supplies mining and off-highway equipment sectors.
"We welcome the opportunity to work alongside Steve Tidwell and the senior management team in implementing Gulfco’s growth strategy, while remaining true to the ideals of customer service and product innovation that have made Gulfco stand out in the markets it has served for more than 90 years,” stated Elizabeth Burgess, a senior partner with Altus.
Burgess explained to FORGING that Gulfco shares some common characteristics with other Altus assets, but she noted it has no strategic connection with any other holding and the fund has no plans to consolidated Gulfco with anything in the portfolio. “It will be a platform investment in the fund,” she stated.
Tidwell is the CEO of Gulfco, who joined the forging company recently from the Ameriforge Group, where he had been the chief operating officer for five years. “With his extensive background in the forging industry, Steve is a great addition to the Gulfco team," Mackin said.
Tidwell told FORGING that Altus plans to grow the business among oil-and-gas, mining, and off-highway equipment customers, as well as in other sectors he did not list.
“Gulfco has existing capacity and capabilities to serve and grow with new customers and broaden our base with existing customers,” Tidwell indicated, “and will quickly expand thecapabilities to offer all customers a broader range of forged products.”
He said that the new owners’ initial capital investments would be targeted at improving the safety and working conditions of the plant, as well as its general efficiency. Further investments in heat treating and machining may be expected, to support expansion plans, he noted.
But, Tidwell also indicated the new owners are developing plans to invest in systems and workers to improve customer service and delivery schedules. “Part of our growth plan is to further improve our already outstanding lead-time,” Tidwell explained. “Through collaboration and working closely with our customers we are able to provide superior service -- which is a long-standing strength that Gulfco is well known for in the markets it serves.”