Houlihan Lokey Advises Grammer Industries

Houlihan Lokey is pleased to announce that Grammer Industries, Inc. (Grammer), a portfolio company of Stellex Capital Management (Stellex), has acquired Sterling Transport Co., Inc. (Sterling). The transaction closed on April 2, 2019.

Now entering its fifth decade, Grammer is recognized as the premier provider of safe, dependable bulk hazardous chemicals transportation services in the United States. Grammer's excellent record of safety and reliability has allowed the company to cultivate longstanding relationships with its customers, with many spanning back to the company's founding. Grammer has 17 facilities strategically located near major chemical production hubs across the United States. Grammer was acquired by Stellex in 2018.

Stellex is a private equity firm that invests in and oversees U.S. and European corporate assets. Stellex's focus is on middle-market companies going through business or industry transitions, as well as special situation opportunities. Stellex seeks to identify and deploy capital in opportunities that have the potential to provide stability, improvement, and growth for its portfolio companies.

Sterling is a third-generation family-owned business founded by the Hinton family in 1939. Sterling has grown into an established transporter of hazardous and specialty chemicals and materials, serving customers in the Southeast, the Midwest, as well as the East Coast and states further West, including Texas.

The combined business will have 22 terminals, 350 tractors, 850 specialty trailers, and more than 500 drivers and owner-operators who will continue to support more than 2,000 delivery points serving more than 500 customers. Both companies' drivers are highly trained, dedicated professionals who are committed to delivering the highest quality customer service. As part of the transaction, Sterling's founder, Mr. Hugh Hinton, Jr., will continue to be an investor in the combined company.

Houlihan Lokey served as the buyside financial advisor to Grammer. This transaction exemplifies the continued success of our dedicated Transportation & Logistics practice and represents another transaction in a long track record of advising and delivering outstanding results for transportation and logistics clients.