Rose Machine and Fab., Inc. has been acquired by Ellwood Group, Inc.

HOUSTON, December 10, 2012 – GulfStar Group (“GulfStar”) is pleased to announce the sale of Rose Machine and Fab., Inc. (“Rose” or the “Company”) to Ellwood Group, Inc. (“EGI”). GulfStar served as exclusive financial advisor to Rose throughout the transaction, which closed on November 30, 2012.

Headquartered in Houston, Texas, Rose is a rough, semi-finish and finish machine shop supplying mission critical parts to the oilfield, midstream oil and gas, petrochemical and related industries. The Company operates more than 75 CNC machines out of its 110,000 square foot facility and employs approximately 125 people. The Company’s significant investment in superior equipment, its proprietary machining techniques and highly experienced management team, enabled Rose to become a market leader in the machining industry. Founder and CEO Richard Rose will continue to run the operations of the business and has joined EGI as President of Ellwood Rose Machine.

“GulfStar Group’s extensive insight and negotiating skills were critical for guiding us throughout the entire process,” said Richard Rose. “The number one goal of Rose was to ensure both the current employees and critical customer relationships were not jeopardized in any way by inaccurate rumors in the market place. GulfStar was able to present the Rose package and keep our anonymity at the same time.”

Headquartered in Ellwood City, Pennsylvania, EGI produces engineered, heavy metal sections for capital specialty equipment manufacturers in the United States and around the world. The company’s nine operating business units – encompassing multiple plants in Pennsylvania, Michigan, Ohio, Texas and Canada – are dedicated to solving customers’ needs for specially engineered forging steels, iron castings, forgings, and other alloy parts. Key industries served include oil and gas, mining, metals processing, power generation, aircraft, railroad, automotive, tooling, water transportation, and defense.

The GulfStar team included Managing Director Colt Luedde, Senior Vice President John O’Brien and Associate Jay Stone. “We are proud to have been a part of the Rose team on this transaction. Richard has built a terrific company and it is an honor to have represented him at such an important time in the life of the business,” said Luedde. “The strategic combination with EGI expands the capabilities of both companies and should benefit the customers and employees of both organizations.”

About GulfStar Group

GulfStar is a leading middle market investment and merchant bank headquartered in Houston. GulfStar specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, and general corporate finance advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed over 575 transactions in more than 30 states and seven foreign countries across a variety of industries. Through its merchant banking affiliate, the firm also makes equity and subordinated debt co-investments.

Securities offered through GulfStar Group I, Ltd. an affiliated entity, member FINRA – SIPC.