Landreth Buys Back Landreth; Industrial Holdings Becomes T-3 Energy Servies

John Wolz

Landreth Fastener Corporation completed the purchase of the assets of Landreth Metal Forming Inc. from Industrial Holdings Inc.
The Landreth sale is the fourth and final portion of the divestitures planned by Industrial Holdings prior to its merger with T-3 Energy Services Inc.
T-3 now trades on the Nasdaq as TTES.
Michael Stansberry has been named president and CEO and Michael Mino CFO
Houston-based Landreth manufactures solid, semi-tubular & shoulder rivets, externally-threaded fasteners and other cold-headed special parts.
LFC is a newly formed corporation owned by Thomas Landreth, the founder and president of Landreth. He sold the original company to IHI.

“By combining the two companies, we have created a diversified manufacturing and service business focused primarily on the Gulf Coast energy markets,” Stansberry said of the IHI and T-3 merger. “We believe our core group of operations will serve as a solid base upon which we plan to grow through acquisition and product line extensions.”
Mino said the merger and $72.1 million equity infusion by T-3’s largest shareholder, First Reserve Fund VIII L.P., make the company “adequately capitalized. Total debt balances on the company�s opening balance sheet will be less than $40.0 million. Our conservative capitalization should prove invaluable in today�s uncertain energy markets.”
T-3 now provides products and services for Gulf of Mexico and onshore oil and gas companies, refinery plants, shipyards and offshore fabrication companies.

Industrial Holdings earlier sold three parts of its Engineered Products Group: American Rivet Company was sold to Jebco Screw & Rivet Mfg. Company, and Ideal Products and Orbitform were sold to an investor group operating as Orbitform LLC. Industrial Holdings also sold its Beaird segment and its subsidiary, GHX Incorporated.
For the nine months ended September 30, 2001, T-3 Energy Services� net income was $2.2 million on $62.1 million in revenue.
Richard Hagan of New York-based Pinnacle Capital Corporation served as financial advisor to IHI in the transactions. �2001 FastenerNews.com