The City Council background packet for December 17 directly expressed the heretofore subtle economic development theme of helping local employers hit hard by competition for workers and rising wages.
The City is "currently working with four local companies to assist their needs in restructuring, expansion and transfer of ownership."
City Council discussed an offer to Hirschfeld Industries in their December 3rd Executive Session. Insight Equity has owned a controlling interest in Hirschfeld since April 2006.
Insight targets a 6-8+ year investment horizon. Hirschfeld is months away from 8 years of Insight ownership. Insight Equity is a private equity underwriter (PEU). Hirschfeld paid nearly $100 million in partner distributions from 2006-2009 with sponsor Insight getting the lion's share. It's not clear how much they paid to their PEU owners from 2010-2013.
Texas Governor Rick Perry renegotiated a Texas Enterprise Fund agreement with Vought Aircraft Industries right before The Carlyle Group sold Vought to Triumph Group. Buyers don't want to be saddled with failure to perform job incentive obligations, especially one requiring repayment of $35 million for cutting 35 jobs over a six year period. That's right Perry gave the Carlyle affiliate $1 million per job lost.
Hirschfeld may or may not be the local company for sale mentioned in the City Council packet. If it's not now, Hirschfeld's turn on the auction block will come. Insight expects exceptional returns from Hirschfeld Industries. I imagine they're happy for San Angelo taxpayers to add to their bounty.