CST Co Acquired by ARMStrong Receivable Management

Baird’s Business Owner Solutions (“BOS”) group recently advised CST Co. (“CST” or “Company”) on its sale to ARMStrong Receivable Management (“ARMStrong”), a portfolio company of BharCap Partners. The partnership strengthens ARMStrong’s existing footprint in the commercial collections industry across the southeast.

Based in Louisville, Kentucky, CST is a commercial collection agency serving a variety of industries including building products, logistics, and industrial manufacturing. Over the Company’s 95+ year family-owned history, CST has become a comprehensive service provider offering pre-collection calls, pre-litigation services, and third-party collection services. Baird BOS worked collaboratively with Management and the ownership group to identify a strategic partner with a shared desire to maintain CST’s legacy while providing opportunity for continued growth.

“I have been impressed with the Baird team from start to finish,” noted CST President Pete Roth. “Their outline of what to expect in the process and their help in preparing us for each next step made the whole process less daunting. I could not be more pleased with their effort, interest, and expertise.”

Headquartered in Itasca, IL, ARMStrong is the largest commercial B2B Receivable Management Firm in North America, specializing in receivable management solutions for insurance companies and general commercial industries. ARMStrong leverages cutting-edge technology to build quality partnerships across its five primary brands: Altus, Brown and Joseph, NEIS, Paragon, and SubroIQ.

BharCap Partners is a private investment firm investing in businesses across the financial services industry including insurance distribution and insurance services; asset and wealth management; financial technology and tech-enabled business services; and specialty finance. BharCap is a minority-owned and controlled firm and members of the BharCap team have been involved, as both an investor and an operator, with investment in numerous services companies totaling in excess of $1.3 billion of equity capital.

About Baird Business Owner Solutions

Baird’s Business Owner Solutions team advises lower middle-market and emerging growth companies and their owners on business transition, valuation, and M&A transactions.