Mosaic Capital Partners Announces Investment in Gautier Steel ESOP
August 11, 2023
Mosaic Capital Partners LLC (“Mosaic”) announced today an investment in the newly formed Gautier Steel Holdings Inc. (“Gautier”, or the “Company”) ESOP. The Company operates a bar mill producing hot rolled carbon and alloy flats and squares as well as a plate mill offering plate products in tool steel, stainless and more. The two mills operate from the same facility in Johnstown, PA and had previously been under separate ownership.
“We felt strongly that combining the two mills under common ESOP ownership would benefit the operations of each”, noted Joe Strycharz, who led the transaction for Mosaic. “The Gautier operation has long been a fixture in the city of Johnstown and we are thrilled that the employees will reap the rewards of its continued success.”
The Gautier Steel facility was founded in 1852 by Josiah H. Gautier and was owned by Cambria Iron Company and Bethlehem Steel Corporation for much of the 19th and 20th centuries. Since 2017, Gautier has been led by CEO Glen Buckley in conjunction with a transaction led by New State Capital Partners. “We are very excited to partner with Mosaic on this next chapter”, remarked Mr. Buckley, who will continue to lead the business. “Mosaic is a well-respected, industry leader in ESOP transactions and will be a great strategic partner for us moving forward. We feel there is ample growth ahead of us and are glad that our employees will share in that success.”
The ESOP provides a substantial retirement benefit to all eligible, full-time employees. Research shows that companies with an ESOP tend to be environmentally conscious, experience less voluntary turnover, and perform better in times of economic downturn.
Financial partners in the transaction included KeyBank, Patriot Capital, Tecum Capital and Salem Investment Partners. Signet Capital Advisors served as the Company’s financial advisor during the transaction.
About Gautier Steel
Gautier Steel Holdings Inc. (“Gautier”) is a niche manufacturer of hot rolled steel bar and specialty steel plate in Johnstown, PA. For more information, visit www.gautiersteel.com.
About Mosaic Capital Partners, LLC
Mosaic Capital Partners LLC (“Mosaic”) is a private equity firm focused on investing in lower middle market companies ($3-$12 million EBITDA) through an Employee Stock Ownership Plan (“ESOP”) transaction. Based in Charlotte, NC Mosaic combines a number of compelling attributes of private equity and employee ownership in its unique investment approach.
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Contact
Joe Strycharz
Mosaic Capital Partners
101 S. Tryon Street, Suite 2555
Charlotte, NC 28280
Email: jstrycharz@mosaic-cp.com
www.mosaic-cp.com