Brown & Settle Inc. undergoes recapitalization

Brown & Settle Inc., a provider of large parcel site development services in the Virginia, Maryland, West Virginia, and Greater Washington D.C. area, has announced that GHK Capital Partners of Greenwich, Connecticut, completed a recapitalization of the company in partnership with the founders Michael Brown, Jr. and Gregory "Tommy" Settle. Breakwater Management LP of Los Angeles and funds advised by Headway Capital Partners LLP of London provided preferred equity financing. Breakwater Management LP was the exclusive provider of debt financing to support the recapitalization.

Brown & Settle Inc. is the newly formed holding company for B&S Site Development and Commonwealth Recycled Aggregates & Materials, both of Bristow, Virginia, and Valley Rock Services, Manassas, Virginia. The company is a full-service large parcel site development provider of services including excavation, clearing, rock blasting, demolition, recycling, paving, and utility installation. The company says it will continue to provide its services while expanding its market position among its regional and national customer base. Brown and Settle, both civil engineers, will continue to own together approximately a third of the business following the recapitalization and will remain in their current roles leading operations.

"We are extremely pleased to partner with Mike and Tommy to build upon what is already an exceptional service provider to the region, and to further expand the capabilities and geographic reach of Brown & Settle, Inc.," said Gil Klemann, the managing partner of GHK, in a press release. "Having spent significant time evaluating the market and competitive landscape, it is clear to us that Brown & Settle represents a best-in-class provider, differentiated by its vertically integrated service offering and its commitment to reliably deliver solutions to its customers. Furthermore, in addition to facilitating the development of distribution centers and other commercial and government properties, the company has established itself as a major provider of site development services for data centers in Northern Virginia, the largest data center market in the United States."

"GHK Capital Partners represents a strong strategic partner for Brown & Settle," said Mike Brown, the president of the company. "I was impressed by how Gil and his team engaged themselves in our business to understand our market, operations, culture, and future growth potential. I am looking forward to a period of continued growth and success with the help of GHK's resources and strategic guidance."

As part of the transaction, Christopher Kete and Diane Waters, both experienced industry executives, will join the company's management team.

The sellers were advised by Prime Investments LLC of Rockville, Maryland, and were represented by Tomlinson Advisory Group LLC of Vienna, Virginia.  The buyers were represented by Day Pitney LLP of Hartford, Connecticut.