LOS ANGELES--(BUSINESS WIRE)--Solace Capital Partners (“Solace”) today announced it has acquired a majority interest in Fabcon Holding Corporation (“Fabcon” or the “Company”), a leading manufacturer of precast, pre-stressed concrete wall panels for nonresidential construction applications. Platinum Equity, which acquired Fabcon in 2016, will remain a meaningful equity investor and Company management will also participate in the transaction. Financial terms were not disclosed.
Based in Savage, Minn., Fabcon’s structural precast wall panels are used primarily in the construction of warehouses and distribution centers as well as mixed-use office, industrial, data centers and retail facilities. The Company is a trusted partner to a broad array of building owners and developers and provides its blue-chip customers with a comprehensive and integrated service offering that includes engineering, fabrication, erection and project management. Fabcon serves the eastern half of the U.S. through its four strategically-located manufacturing facilities in Minnesota, Ohio, Pennsylvania and Kansas.
Chris Brothers, a Managing Partner at Solace, said, “Fabcon is a strong market leader with a unique customer value proposition, providing best-in-class quality and service within the nonresidential construction industry including to the rapidly-expanding warehouse and distribution center sectors supporting the nation’s secular shift to ecommerce. We are delighted to be partnering with Fabcon’s seasoned management team and Platinum Equity as the Company seeks to accelerate its growth and expansion plans.”
Dan Krasner, a Principal at Platinum Equity, stated, “We are proud of everything Fabcon has achieved during our ownership. The Company expanded its capacity, installed best practices, and substantially increased revenue and earnings. Fabcon is a strong platform for continued growth with many attractive opportunities ahead."
Tom Kuckhahn, President and CEO of Fabcon, added, “We are thrilled to be working with Solace Capital, which brings additional resources and operational focus to the company as well as a demonstrated track record of building long-term value for its portfolio companies. Platinum Equity continues to be a strong supporter of our vision for growth and we are excited they are maintaining a meaningful investment in our business.”
About Solace Capital Partners
Solace Capital Partners is a private investment firm focused on special situations and distressed-for-control investments in lower-middle market companies. Solace’s principals have on average 25 years of relevant investing experience across various sectors and invested over $5 billion across over 100 companies. Launched in 2014, Solace has approximately $610 million of assets under management with offices in Los Angeles and New York.
About Platinum Equity
Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with $13 billion of assets under management and a portfolio of approximately 40 operating companies that serve customers around the world. The firm is currently investing from Platinum Equity Capital Partners IV, a $6.5 billion global buyout fund, and Platinum Equity Small Cap Fund, a $1.5 billion buyout fund focused on investment opportunities in the lower middle market. Over the past 23 years Platinum Equity has completed more than 200 acquisitions.
Founded in 1971, Fabcon began by producing 8-foot wide concrete wall panels and floor slabs for use in apartment buildings and retail projects. Over the years, the company expanded in capabilities and markets served, pioneering the first insulated, non-composite precast wall panel, and opening three additional manufacturing facilities. To this day, Fabcon maintains a tradition of quality, a commitment to innovation, and a readiness to seize new opportunities to serve precast concrete customers. Fabcon is based in Savage, Minn. and currently employs approximately 900 people.