Mosaic Capital Partners Provides Subordinated Debt to Gautier Steel
November 8, 2017
Mosaic Capital Partners, LLC (“Mosaic”) announced today a subordinated debt investment in support of the Employee Stock Ownership Plan (“ESOP”) buyout of Gautier Steel, Ltd. (“Gautier Steel” or the “Company”), a niche manufacturer of specialty shapes and sizes of hot rolled steel bar products. Mosaic’s $12 million investment in Gautier Steel will help enable the Company to implement a 100% S-Corp ESOP.
Glen Buckley, CEO of Gautier Steel commented, “Mosaic’s track record of collaborating with ESOP companies made them the ideal candidate for financial and technical support in our ESOP transaction. We know that Mosaic will be a great partner as the Company continues its ESOP journey.”
Mosaic Managing Partner Dabney Smith added, “We were thrilled when Gautier Steel’s advisor, Signet Capital Advisors, came to us with the express intent of establishing an ESOP. The ESOP structure was a fitting option for Gautier Steel. We are confident that the outstanding management team and employees will continue to achieve superior results, and thus create prosperity for both the Company and the employees. We look forward to a great partnership with Glen and his team.”
Signet Capital Advisors served as the Company’s financial advisor during the transaction, and additional funding was provided by PNC.
About Gautier Steel, Ltd.
Gautier Steel, Ltd. (“Gautier Steel”) is a highly respected, leading niche boutique steel mill known for exceptional service and quality located in Johnstown, PA. Gautier Steel makes and sells niche shape and size hot rolled steel bar flats, squares, and special section products, typically on short manufacturing runs.
About Mosaic Capital Partners, LLC
Mosaic Capital Partners, LLC (“Mosaic”) is a private equity firm providing mezzanine debt and equity to privately held lower middle market companies. Based in Charlotte, NC, Mosaic employs traditional private equity buyout strategies while also applying the partners’ unique expertise in Employee Stock Ownership Plans (ESOPs). Mosaic aims to help business owners achieve liquidity, wealth transfer and ownership transition with its PE-ESOP product.