PAT Tank Has Been Acquired by Transition Capital Partners

HOUSTON, November 13, 2024 – GulfStar Group (“GulfStar”) is pleased to announce the acquisition of PAT Tank Inc. (“PAT Tank” or the “Company”), a portfolio company of 3 Rivers Capital (“3RC”), by Transition Capital Partners (“TCP”). GulfStar served as the exclusive financial advisor to PAT Tank throughout the transaction, which closed on November 1, 2024.

Located in Port Arthur, Texas, PAT Tank is a leading turnkey provider of construction and repair of above-ground liquid storage tanks (“ASTs”) to a variety of industrial end markets across the United States. The Company’s capabilities include tank design, fabrication, delivery, installation and coating services, as well as distribution and installation of related products. The Company’s location in the heart of the United States Gulf Coast region provides strategic access to the most highly concentrated installed base of hydrocarbon ASTs in the country. Its services are in consistent demand due to the ongoing operating and regulatory requirements that drive regular tank installation, repair and upgrade.

“3RC had a great experience working with the GulfStar team—from the partners that guided and negotiated the transaction in a tough industry, to the junior team that greatly helped in planning, organizing, and executing on the sales process. GulfStar’s efforts resulted in a very successful outcome for all stakeholders,” said Michael Zhong, partner at 3RC.

TCP is a Southlake, Texas-based private equity investment firm. Founded in 1993, TCP has invested in over 50 middle market companies spanning a diverse array of industries with a particular focus on the Texas market. TCP partnered on the PAT Tank acquisition with Plexus Capital, which provided debt financing and an equity co-investment.

“GulfStar greatly appreciated the opportunity to advise PAT Tank on this process, which provided a quality outcome for the seller, 3RC, and a broader opportunity for Company management to participate in future value creation at the business,” said Bryan Frederickson, managing director at GulfStar. “PAT Tank enters an exciting next phase with TCP and is well-positioned to capitalize upon the ongoing need for infrastructure maintenance and expansion within the Company’s core markets and beyond.”

The GulfStar team was led by Managing Directors Bryan Frederickson and Ben Stanton with support from Associate Billy Conner and Analyst Alex Britz.

Metz Lewis Brodman Must O’Keefe served as legal counsel to PAT Tank and BDO provided transaction accounting services.

About 3 Rivers Capital
3RC is a private equity firm focused on control acquisitions of businesses with EBITDA between $4-$10 million. Since its founding in 2005, 3RC has built expertise in acquiring family and entrepreneur-owned businesses that present a clear and compelling opportunity to create significant value. 3RC adds value through active ownership and supportive partnerships with highly motivated management teams.

About GulfStar Group
GulfStar is one of the leading middle market investment banking firms in the United States, with a proven track record of delivering exceptional results in merger and acquisition, private placement and strategic advisory services. We advise private business owners and corporate clients with revenues ranging from $25 million to $350+ million across a variety of key industry sectors. Founded in 1990, GulfStar has completed more than 750 transactions in 38 states and 18 foreign countries.