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GHX HOLDINGS
Dan Ahuero and Ben Andrews knew just where to turn when the time came to add a financial partner to GHX Incorporated. GHX, which the two seasoned executives owned and managed, is a 70 year old, Houston-based, value-added distributor/fabricator of hoses and gaskets to the refining, petrochemical, oil and gas, power generation and manufacturing industries. They were looking for a partner to help them expand organically and through acquisitions.
"We knew Mike Young had extensive operational experience with companies located in multiple states, and that his expertise would be invaluable as we made strategic acquisitions, added staff and expanded our product offering, " says Ahuero, the company's president.
"Both Dan and I were also aware of CapStreet's excellent reputation in the financial community" adds Andrews, who serves as GHX's executive vice president, development.
Since CapStreet's investment in May 2007, GHX has made 3 acquisitions, and pro forma EBITDA has more than doubled. Ahuero says he appreciates that fact that CapStreet's facilitation of the acquisition process has allowed them to continue their focus on the core business. "We catch ‘em; they clean ‘em," he says, referring to CapStreet's extensive analytical research and execution of add-on acquisitions.
According to Andrews, "It's the people you work with and the alignment of goals that really matter. With CapStreet, we found a great partner who has exceeded even our own high expectations."
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WORLDWISE HOLDINGS
"When I founded Worldwise at 23," says founder Aaron
Lamstein, "people told me it would take twice as long
as I expected to grow the business. They were wrong
- it took three times as long." So when looking for an investor in 2005,
Aaron’s first priority was to find a partner who could help him accelerate
the growth of the company. "If I hadn’t found the right partner, I would
have walked away," says Lamstein.
Lamstein had a lot of investor choices. He picked CapStreet because its bid was competitive and because it had previous industry experience. Worldwise designs and distributes eco-friendly pet products to the fast-growing pet supplies market. It was also very important to Lamstein that there be a good personal fit. “I trusted CapStreet. Their references indicated they are honest, high-integrity guys.” Moreover, Aaron saw huge potential upside in his business; with CapStreet, he was able to pursue it and maintain a substantial equity interest.
Lamstein didn’t know what to expect from a private equity investor, but he says the experience has exceeded his expectations. “They added board members of exceptional caliber, the CapStreet team has been a great resource, and they have added talent and depth to my management team.”
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| TRINITY STEEL |
"CapStreet has helped us think outside the box," says Roy Karnes, CEO of Trinity Steel. "We thought outside the box before; our box was just a little smaller." Randy Karnes, Vice President, adds, "CapStreet's vision helped us find new ways to increase sales during tough economic times, and their planning guidance has helped us prosper despite the economic downturn."
The Karnes' father founded Trinity Steel, a leading provider of structural fabrication services to the petrochemical, energy, power and engineering and construction markets, more than 30 years ago. They were introduced to CapStreet when looking for sources of expansion capital, and CapStreet invested in the company in July 2008. 
Since its investment, CapStreet has worked with Trinity's management to expand its manufacturing capacity, improve operating efficiencies, diversify into new end markets and reduce debt through increased cash flow growth.
Randy says Trinity selected CapStreet as its financial partner because, "…we were looking for someone to help us grow the business. It was clear that CapStreet was going to push us to grow, but in a way that preserves our longstanding reputation and success." Roy adds "Since CapStreet is locally based, we knew we would have easy access to them and they would be there when we needed them. They understand our market, and we have developed a great relationship based on mutual trust."
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