24 Mar 2021
LARCHMONT, N.Y., March 17, 2021 /PRNewswire/ -- New State Capital Partners ("New State" or "the firm") and its portfolio company, Mako Steel, today announced they have made a majority investment in Rabco Enterprises LLC, a full-service provider of self storage building systems based in Winter Garden, FL. Together, Mako and Rabco will form a nationwide self storage solutions company. Terms of the transaction were not disclosed.
The Rabco executive team will retain a stake in the combined operation. Mako Steel CEO Caesar Wright will become CEO of the combined entity, and Emmett Buster Owens III, president of Rabco, will continue with the combined company. Ron Raboud and Larry Cox, owners of Rabco, will remain in advisory roles to the combined business.
"The self-storage industry has only grown over the past year, and we see that trend continuing," said Shaun Vasavada, Vice President at New State. "As leaders in their respective markets, both Mako and Rabco have a high-touch, asset-light approach that improves the experience for its customers. In fact, the combined company derives north of 80% of its business from repeat customers, a testament to the strong service they provide and the lasting relationships they have built."
Both companies build single-story, multi-level, and custom storage facilities, managing the process for their self-storage company customers from engineering to contracting and on-site installation. Mako has been named "Best Builder" six years in a row by Inside Self-Storage.
"Most self-storage facilities are owned by independent developers, and they will continue to be the core of our customer base," said Mr. Wright. "A recent industry study notes that developers and general contractors are clamoring for a nationwide player in the storage facility solution space. With a collective involvement in over 4,000 storage facilities, we are excited to partner with Rabco to become the first nationwide, one-stop solution for our partners all across the country."
Mr. Owens added, "We look forward to a powerful partnership with New State and Mako. The financial and operational resources they offer will be instrumental as we add services and expand geographically to achieve our next-level potential."
New State was advised on the transaction by Morgan Lewis (legal) and Duff & Phelps (financial). Rabco was advised by Brown Gibbons Lang & Company as its sell-side advisor.
Founded in 1993, Mako Steel designs, supplies, and installs steel buildings for the self-storage industry. Their services include single-story, multi-story, conversions, custom buildings, auto, boat, & RV storage, building components, container storage, engineering services, metal building constructors, mobile, portable & container storage, and roofing. Based in Carlsbad, California, Mako Steel has a presence throughout the country and specializes in working with first-time customers. www.makosteel.com.
Since its founding in 1988, Rabco has built many different types of steel buildings, including self-storage, agricultural steel buildings, airplane hangars, and sports facilities. Based in Winter Garden, Florida, the company offers expert site planning, unit/mix analysis, installation, and customization options for roof systems, insulation, framing systems, gutters, door and hallways options, and color selections. https://rabco.com.
New State Capital Partners LLC is an entrepreneurial-minded private equity firm that strives to be nimble, decisive and cooperative. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships with company founders, independent sponsors, and others. New State seeks to invest in market-leading companies with $8 million to $30 million of EBITDA in the areas of business services, industrials, and consumer. New State can commit more than $50 million of equity capital per transaction, using a variety of investment structures, through New State Capital Partners II, LP. New State and its affiliates have invested in 26 companies to date. For more information visit www.newstatecp.com.
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