Falcon Steel begins new chapter after $30 million investment
Two years ago, it looked like Falcon Steel might face the fate of many other old-line U.S. manufacturers when it filed for bankruptcy.
Instead, the 53-year-old fabricator, based in Haltom City near the border with Fort Worth, is ready for a new start 17 months after exiting bankruptcy, thanks to a $30 million recapitalization that will pay for new equipment and help the company win more business, said CEO Jim Taylor.
If projections pan out, the company will add 60-75 employees over the next 12 to 14 months, adding to its workforce of about 300 at facilities in Haltom City, Euless and Kaufman, Taylor said in an interview.
“As we win jobs, we look for fitters and welders,” said Taylor, a turnaround expert who came in as a restructuring consultant and took over as CEO two years ago. “We will put on a second shift and expand as soon as we fill up the first shift.”
The company makes lattice towers, poles and substation structures for electric utilities such as Oncor and Centerpoint. It also supplies metal structures to hold highway signs throughout the state, and other pieces such as sculptures at Grapevine Mills mall and stairways at AT&T Stadium in Arlington.
The financial injection came from two investment firms in Dallas — ReignRock Capital Partners and Inverdale Capital Management — plus a line of credit from Chase Bank. In a nice twist, the money bought out 24 shareholders, mostly managers at the company, who were able to make it through a bankruptcy reorganization that gave the company time to find new investors to pay off creditors.
Renamed Falcon Steel America, Taylor plans to capitalize on its position as a U.S. manufacturer. “When on-time delivery is critical, geographic and cultural proximity are major benefits,” he said in a statement. “American-made products also stand for quality — which is exactly what our reputation is built on.”
Steve Kaskovich: 817-390-7773, @stevekasko
This story was originally published September 16, 2016 at 4:01 PM with the headline "Falcon Steel begins new chapter after $30 million investment."