Austin Ventures, an Austin, Texas-based private equity firm, has acquired Delta Rigging & Tools. Delta, based in Lake Jackson, Texas, is North America’s largest one-stop provider of lifting products and services in the lifting equipment and rigging industry. Delta has a national footprint of customers and end markets, but is particularly strong throughout the Gulf Coast of Texas and Louisiana.
Over the past three years, Delta has acquired and integrated several regional market leaders. With the additional funding from Austin Ventures, the company will continue to pursue growth initiatives through strategic acquisitions, geographic expansions, existing and new customer relationships and additional product and service expansions. AV and Delta’s management team have also partnered with CIT Energy, a division of The CIT Group, and Madison Capital Funding to provide the equity and debt capital necessary to support Delta’s continued growth.
“This transaction is excellent news for Delta’s customers and employees,” said Kevin Rodgers, Delta CEO. “In addition to realizing value for Delta’s current shareholders, the company gains an outstanding partner with whom we can confidently and aggressively pursue our growth strategies. AV has a solid track record of partnering with management teams and industry-leading financial partners to create value in their portfolio companies.”
Rodgers told RER that Austin Ventures is about 10 times the size of Prospect Partner. “We had a great relationship with Prospect Partners, but for a fund of its size, we had gotten about a big as we could get,” he said. “With a much larger fund, we can really focus on expanding the business, through acquisitions and start-ups as well as bring on new products and services. So it’s an exciting thing for all of us.”