Prophet Equity Announces Sale of Allegiance Crane & Equipment, LLC
January 15, 2020 – Southlake, TX – Prophet Equity (“Prophet”), a Southlake, TX-based private equity firm, has completed the sale of its portfolio company, Allegiance Crane & Equipment, LLC (“Allegiance” or the “Company”)
Prophet acquired Allegiance in December 2010. The Company, which is headquartered in Houston, Texas, was able to expand through acquisitions and greenfield investments into two additional branches in Texas located in Corpus Christi and Midland/Odessa, along with two branch locations in Pompano Beach and Fort Myers, Florida. Through executing strategic initiatives, investment in the leadership team, and significant fleet capacity expansion, Prophet was able to transform the business into a diversified provider of crane and rigging services in the petrochemical, infrastructure, commercial construction, and power markets.
Michael Hirschfeld, Senior Vice President at Prophet Equity commented, “We thoroughly enjoyed the hands on approach with the Allegiance team over the past nine years. Allegiance’s disciplined focus on fleet expansion into high-margin growth markets, allowing revenue and EBITDA to expand ~4.5x and ~20x, respectively, shows what is possible when deploying a long-term value creation approach to businesses.”
Guy Huelat, CEO of Allegiance commented, “Since my arrival in late 2017, the Prophet Equity team was instrumental in supporting the repositioning of Allegiance within the markets and customers served, which has enabled us to create a unique platform and I’m excited about our next phase of growth.”
“Allegiance is another example of a very successful buy & build turnaround and value creation success story, producing a fantastic outcome for our investors,” added Ross Gatlin, Prophet’s CEO and Managing Partner. “Our unique hands on approach and the deployment of our Holistic Value Creation™ (HVC™) process is a testament to the value opportunity that can be unlocked in businesses like Allegiance. We thank the exceptionally experienced management team at Allegiance for their commitment and dedication to maximizing value.”
Oppenheimer & Co. Inc. served as financial advisor and Jackson Walker as legal counsel to Allegiance and Prophet Equity.
About Prophet Equity
Prophet Equity is a private equity firm that makes control investments in strategically viable, asset-intensive, underperforming companies. Over more than twenty years, our Principals have invested in and managed entities with over $6 billion in revenue. Prophet Equity’s control equity investments focus on lower middle market companies with strategically strong businesses and significant value creation potential, such as those found in partnerships, corporate carve-outs, divestitures and non-strategic businesses of larger companies. Representative business situations have included special situations, succession planning, recapitalizations, acquisitions, and buy and build strategies. Partnering with owners and management teams, Prophet Equity’s team of experts utilize a Holistic Value Creation™ (“HVC™”) strategy that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation. Portfolio company management teams are highly motivated with clear, uncapped incentives based on realized business performance. For more background on Prophet Equity, our approach and our team, please visit www.prophetequity.comBack to Press Room