Dan-Loc Bolt & Gasket

Based in Houston, TX, DL Industries, L.P., d/b/a Dan-Loc Bolt & Gasket ("Dan-Loc" or the "Company"), is a leading manufacturer of stud bolts and ring joint gaskets for use in the oil and gas and petrochemical industries.  The Company's products in a range of sizes for use in securing flange system connections in pipelines, oil and gas wells and refineries. 

Situational Analysis

Dan Loc's shareholder group included two private equity owners that were considering options for realizing value in their investments.  These owners oversaw an operational turnaround several years prior that solidified Dan-Loc's brand in the marketplace and reduced fixed costs.  The Company subsequently generated several years of increasing revenue and profitability, creating an opportunity for its owners and management to capitalize on their successful efforts.

GulfStar Group Strategy

Dan-Loc's private equity owners conducted a thorough selection process in which a number of investment banks were invited to review Company financial and operating information and present their evaluation of how to best approach the market.  Dan-Loc ultimately retained GulfStar to represent the Company in the contemplated sale or recapitalization.  GulfStar marketed the business to a broad spectrum of potential buyers, including domestic and foreign manufacturers of industrial fasteners, manufacturers of products sold through the same distribution channels or to the same universe of end users and qualified private equity groups.

Transaction Results

GulfStar completed the recapitalization of Dan-Loc to a consortium of private equity groups led by Laud Collier & Co. of Madison, NJ, in February, 2007 .