Private investment firm New State Capital Partners LLC and affiliated self-storage builder Mako Steel Inc. have acquired a majority stake in Rabco Enterprises LLC, a Winter Garden, Fla.-based provider of self-storage building systems. Under the move, Mako and Rabco will become a combined business, according to a press release.
Caesar Wright, Mako’s CEO, will serve in the same role for the new entity. Rabco President Emmett Buster Owens III will continue with the merged company, though his role wasn’t defined in the release. Rabco owners Larry Cox and Ron Raboud will stay on in advisory roles.
“The 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 percent of its business from repeat customers, a testament to the strong service they provide and the lasting relationships they have built.”
Mako designs, supplies and installs self-storage and boat/RV-storage buildings nationwide. Both Mako and Rabco build single-story, multi-level and custom facilities, managing the process from engineering to contracting to onsite installation, the release stated.
“Most self-storage facilities are owned by independent developers, and they will continue to be the core of our customer base,” Wright said. “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.”
“We look forward to a powerful partnership with New State and Mako,” Owens said. “The financial and operational resources they offer will be instrumental as we add services and expand geographically to achieve our next-level potential.”
Founded in 1988, Rabco has also built agricultural steel buildings, airplane hangars and sports facilities. Its services include site planning, unit-mix analysis, installation and customization options for roof and framing systems, insulation, gutters, doors and hallways.
Founded in 1993, Mako has built self-storage facilities in 44 states, Canada and Mexico. The Carlsbad, Calif.-based company specializes in boat/RV storage, multi-story and custom buildings. It has multiple plants to offer service nationwide.
New State acquired a majority investment in Mako in 2019. The company targets companies with $8 million to $30 million of earnings before EBITDA (interest, tax, depreciation and amortization) that serve the business-services, healthcare and industrial sectors. It can commit more than $50 million of equity capital per transaction through affiliate New State Capital Partners II LP. New State and its affiliates have invested in 26 companies, the release stated.
PR Newswire, New State Capital Partners and Mako Steel Take Majority Stake in Rabco