Tilman's Fertitta Entertainment is one of the largest privately owned businesses in America. Photo by J. Thomas Ford

Some Houston-area companies have some major bragging rights. Forbes has released its new list of the country’s largest privately owned companies based on annual revenue, and five local firms land on the list. They are:

  • Car dealership group Gulf States Toyota, No. 45, $8.3 billion in annual revenue.
  • Energy company Calpine, No. 48, $8 billion in annual revenue.
  • Petroleum and petrochemical products marketer Tauber Oil, No. 61, $6.7 billion in annual revenue.
  • Casino, restaurant, and sports conglomerate Fertitta Entertainment, No. 166, $2.8 billion in annual revenue.
  • BMC Software, No. 219, $2.1 billion in annual revenue.

Elsewhere in Texas, San Antonio-based H-E-B ranks fifth on Forbes’ new list of the country’s largest privately owned companies based on annual revenue. According to Forbes, the grocery chain’s annual revenue is $32.8 billion, making it the largest private company in Texas. On its website, H-E-B reports annual sales of $32 billion.

The only other San Antonio company on the Forbes list is construction engineering company Zachry Group. It ranks 225th, with annual revenue of $2 billion.

Nearly all of the other Texas companies in the Forbes ranking are based in the Houston and Dallas-Fort Worth and Houston areas. As well as the five Houston companies, 13 DFW companies companies show up on the list:

  • Grand Prairie-based alcohol and wine distributor Republic National Distributing, No. 25, $11.9 billion in annual revenue.
  • Dallas-based conglomerate Sammons Enterprises, No. 70, $5.8 billion in annual revenue.
  • McKinney-based roofing distributor SRS Distribution, No. 80, $5.4 billion in annual revenue.
  • Irving-based arts-and-crafts retailer Michaels, No. 81, $5.3 billion in annual revenue.
  • Dallas-based luxury retailer Neiman Marcus, No. 101, $4.7 billion in annual revenue.
  • Irving-based electrical systems and equipment maker Consolidated Electrical Distributors, No. 103, $4.6 billion in annual revenue.
  • Fort Worth-based food and beverage distributor Ben E. Keith, No. 107, $4.2 billion in annual revenue.
  • Dallas-based oil and gas explorer Hunt Consolidated, No. 113, $4 billion in annual revenue.
  • Frisco-based transportation and logistics software provider Transplace, No. 127, $3.6 billion in annual revenue.
  • Addison-based cosmetics retailer Mary Kay, No. 164, $2.8 billion in annual revenue.
  • Plano-based senior healthcare provider Golden Living, No. 178, $2.6 billion in annual revenue.
  • Dallas-based general contractor Austin Industries, No. 217, $2.1 billion in annual revenue.
  • Dallas-based transportation and logistics company Mode Transportation, No. 220, $2.1 billion in annual revenue.

One other company on the Forbes list, New Jersey-based IT company SHI International Corp., has a strong connection to Texas. Austin billionaire Thai Lee, with a net worth estimated at $4.1 billion, is co-founder, president, and CEO of SHI. The company ranks 28th on the Forbes list, with annual revenue of $11.1 billion.

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Tilman Fertitta is taking Landry's public. Photo by J. Thomas Ford

Tilman Fertitta takes much of his empire public in massive $6.6 billion merger

going public

Tilman Fertitta is about to become even wealthier. The Houston billionaire announced that his company, Fertitta Entertainment, will go public via a merger with FAST Acquisition Corp. (NYSE: FST).

In total, the deal will be worth approximately $6.6 billion. It includes over 500 restaurant locations — ranging from Saltgrass Steakhouse to Mastro's — five Golden Nugget Hotel and Casinos, and Fertitta's stake in Golden Nugget Online Gaming. That valuation is based on projected earnings of $648 million in 2022.

Fertitta will own 60 percent of the company and will serve as its president, chairman, and CEO. Prior to the transaction, Forbes estimated Fertitta's net worth at $4.1 billion. His stake in the new company will grow that amount by $2 billion.

The merger does not include Fertitta's other hotels, such as The Post Oak, his properties in Galveston such as the Pleasure Pier, or the Houston Rockets.

Landry's operated as a public company until 2010, when Fertitta took it private. Going public now allows the company to pursue acquisitions and take advantage of opportunities presented by the downturn is both restaurants and casinos as a result of the coronavirus pandemic. The new company will benefit from both the increase in casino and online gaming taking place across the country as well as decreased competition due to restaurant closures, it states in a press release.

"I want to do big gaming deals," Fertitta told Bloomberg News. "Thirty years ago there was gambling in two states. Now we're approving new states for online almost on a weekly basis."

Merging with FAST instead of going through a traditional IPO allows the transaction to be completed more quickly. The deal is expected to be finalized in the second quarter of 2021.

"After I compared the opportunities provided by a transaction with FAST, versus the traditional IPO route, it became abundantly clear that we could access the capital markets with more certainty and speed if we did a deal with FAST," Fertitta said in a statement. "At the end of the day, the decision to do a deal with FAST was a no-brainer."

Institutional investors will contribute $1.2 billion and own 35 percent of the company. FAST will contribute the $200 million it raised via an initial public offering; its sponsors will own 1 percent of the company. Public investors will own 4-percent. Shares in FAST are up 4 percent at the time of publication.

Fertitta has arranged a merger with a special purpose acquisition company before. In 2020, Golden Nugget Online Gaming, Inc. (NASDAQ: GNOG) went public via a similar transaction. It's currently trading at approximately $18 per share.

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Houston entrepreneur Megan Eddings' activewear brand has received national attention. Courtesy of Accel Lifestyle

Houston entrepreneur snags national spotlight and mentorship from Tilman Fertitta

featuring founders

Fashion and science have more in common than you think: Just ask Accel Lifestyle founder and CEO Megan Eddings, who spent three years developing the Prema fabric used in the ethical and environmentally friendly activewear brand she launched in Houston.

"I've always loved science. I've always been fascinated by things you can't see which is, to me, science and chemistry," Eddings tells CultureMap.

Her fascination with fashion and science has paid off: Eddings is one of 40 selected entrepreneurs across the United States to participate in Inc. Magazine's Founders Project. In honor of Inc.'s 40th anniversary, it launched the year-long project. Designed to assist entrepreneurs to grow their business, the initiative will match 40 established entrepreneurs, including Houston's billionaire Tilman Fertitta, MailChimp's Ben Chestnut, and Drybar's Ali Webb to provide advice, access to capital, marketing guidance, and other valuable assets.

Eddings says she was blown away and couldn't wait to learn about the new mentor-mentee relationship. "I was super excited to be paired with Tilman Fertitta," she says.

Fertitta, the sole owner of Fertitta Entertainment, the restaurant giant Landry's, the Golden Nugget Casinos and Hotels, and the NBA's Houston Rockets tells CultureMap he, "enjoyed meeting Megan and learning more about her unique product. She will surely be another successful Houston entrepreneur and look forward to following her growth."

Eddings says Fertitta has already shared his expertise as she continues pitching Accel Lifestyle to national retailers.

"We've already had a few conversations," she says. "One was about wholesale versus retail, which was printed in the November issue, and there was a video interview published on Inc.com."

With a degree in chemistry from the University of Virginia and experience working in labs at UVA and Brown University, Eddings put her education to use after pondering why her husband's sweaty gym clothes weren't coming out clean.

Her anti-stink fabric ensures consumers are less likely to throw away their clothing, which is a strong focus for the brand — not contributing to the landfill epidemic. With antimicrobial properties, the proprietary fabric is ideal for various industries besides fitness, including hospitality, medical, automotive, and more.

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Samantha Lewis, Tilman Fertitta, and Tiffany Masterson are this week's innovators to know in Houston. Courtesy images

3 Houston innovators to know this week

Who's who

Houston entrepreneurs never cease to impress, leaving a mark on the city for their business minds, creativity, and overall gumption. This week's three innovators to know are no exception.

From a startup venture capitalist and Houston's most recognizable billionaire to a local mom that created — and now sold — a skincare line with a cult following, these are this week's innovative Houstonians to keep an eye on.

Samantha Lewis, director at The GOOSE Society of Texas

Courtesy of Samantha Lewis

Houston has a big fan in Samantha Lewis. The New Mexico native found her way to Texas by way of Texas A&M University before joining the Houston innovation ecosystem and getting her MBA at Rice University.

On the second episode of the Houston Innovators Podcast, Lewis, who's the director at The GOOSE Society of Texas, shares her story of wanting to work in venture capital, but being afraid Houston's venture activity would be too slim. She stuck it out and now the ecosystem is in good place for growth.

"We have to think about getting more capital available for companies that add strategic value to Houston," Lewis says on the podcast. Click here to read more and to listen.

Tilman Fertitta, owner of Fertitta Entertainment

Photo by J. Thomas Ford

Likely, Tilman Fertitta is already a name known and in need of no reminder, but the Houston billionaire is again in the headlines. Fertitta, who just recently acquired Del Frisco's steakhouse chain, has released a new business book, Shut Up and Listen! The book contains the entrepreneur's business advice and "Tilmanisms."

"I thought that I would always write a life story book, but Harper Collins approached me and said they wanted a business management book," Fertitta tells CultureMap. I can't tell you how many times we sat around with my close group and edited this book at the end and went through it five times and read it. If we found a paragraph that was boring, we got rid of it or rewrote it."

CultureMap sat down with Fertitta during a rare break to talk books, business, and his beloved Bayou City. Click here to read the interview.

Tiffany Masterson, chief creative officer and founder of Drunk Elephant

Photo via Business Wire

It was a good week for Houstonian Tiffany Masterson. She sold her skincare line, Drunk Elephant, for a reported $845 million to international makeup giant, Shiseido Company Ltd.

"I started this business as an industry outsider, and from the beginning I did things a little differently," Masterson says in a news release. "To join with a powerhouse beauty company such as Shiseido that leads the industry in innovation and global excellence is a dream come true for me and for Drunk Elephant. We share similar values, most importantly an unwavering commitment to the consumer. I chose a partner who will let the brand continue to be itself, with the same formulations and the same team."

Masterson will stay on with the company as the acquisition allows her products to reach a wider, worldwide audience. Click here to read more.

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Houston startup raises $6M to scale home-based healthcare platform

fresh funding

As healthcare systems race to expand care beyond hospitals and into the home, investors are placing bigger bets on the infrastructure needed to make that shift possible.

This month, Rosarium Health announced it has raised $6 million in seed funding led by Kalos Ventures, with participation from ResilienceVC, Rock Health Capital, Symphonic Capital, Black Tech Nations Ventures and others.

The investment will help the Houston-based startup continue to build its platform, which features a national network of 800-plus clinicians and 3,000-plus contractors to coordinate home accessibility upgrades and modifications for seniors and people living with disabilities.

For founder and CEO Cameron Carter, the company’s mission grew out of firsthand caregiving experiences.

“From my own personal caregiving experiences, I realized that the benefits exist on paper, but not in reality,” Carter said in a news release. “Families are being left to figure out the paperwork and installations all on their own, which shouldn’t be how this works.”

While Medicare Advantage and Medicaid plans have expanded coverage for home-based services and accessibility modifications, the logistics behind delivering those services often remain fragmented.

Rosarium’s platform coordinates the entire process, from clinical assessments and referrals to contractor management, documentation, reimbursement and installation.

“A clinician can document that a home isn’t safe and a plan can approve a benefit, but there’s no one that’s responsible for making sure the work actually gets done,” Carter says. “We built the missing piece.”

The company was founded in 2021 as Rose Health and was a 2023 participant in the Texas Medical Center’s Accelerator for HealthTech program. It has scaled quickly, building a network of more than 800 clinicians and 3,000 contractors across 34 states.

Rosarium is currently in-network for 1.2 million Medicare and Medicaid lives, with projected coverage expected to reach nearly 4 million by the end of the year, according to the release.

“We’re excited to back Cameron because he and the team at Rosarium are building the infrastructure healthcare needs right now to make the home a safe and comfortable place of care,” Kate Ballinger, investor at Kalos Ventures, added in the release.

As part of the recent investment, Ballinger will join Rosarium’s board of directors.

With eyes on the future, Rosarium plans to grow its partnerships with Medicaid and Medicare Advantage plans, including CalViva and Community Health Plan of Imperial Valley, strengthening its presence in California while expanding access to underserved communities.

Additionally, Carter predicts that home-based healthcare will be part of a broader transformation happening across the industry.

“There’s a growing recognition that health outcomes are shaped by what happens in the home,” he said in the release. “The future of healthcare isn’t just treating people after something goes wrong. It’s creating environments that help prevent those problems in the first place.”

Houston business mogul Tilman Fertitta acquires Caesars in $17.6B deal

Money Moves

Houston billionaire Tilman Fertitta may currently be serving as America’s ambassador to Italy, but his company is as busy as ever. Fresh off its move to revive the Houston Comets WNBA franchise, his company, Fertitta Entertainment, has announced a $17.6 billion deal to acquire Caesars Entertainment, Inc.

Speculation about the deal has been circulating since at least March, according to various media reports. The deal combines Fertitta’s well-known Golden Nugget casino brand with all of the properties in the Caesars’ portfolio, including Las Vegas hotels Caesars Palace, Harrah's, Paris Las Vegas, Planet Hollywood, Horseshoe, The LINQ Hotel, Flamingo, and The Cromwell.

Overall, the combined company will include 60 domestic casino resorts and gaming facilities; online gaming including sports betting, iCasino, and Caesar’s online poker platform; retail sports betting at over 200 third-party locations through the William Hill brand; and over 550 Fertitta Entertainment outlets, including more than 450 Landry's full-service restaurants across America. The companies will combine their loyalty programs, Caesars Rewards, Golden Nugget's 24 Karat Select Club, and Landry's Select Club.

The terms will see Caesars’ shareholders receive $31 per share. Fertitta Entertainment will also acquire approximately $11.9 billion of Caesars' outstanding debt.

The transaction will be financed through a combination of equity contributed by Fertitta Entertainment, assumed Caesars' debt, and new committed debt financing arranged by a group consisting of 10 banks. It is subject to approval by Caesars’ shareholders and government regulators.

Fertitta Entertainment is the Houston-based company behind a diverse array of hospitality businesses, including The Golden Nugget, The Post Oak Hotel, River Oaks District, the Kemah Boardwalk, and Houston’s Downtown Aquarium.

It also operates a number of prominent restaurant brands, including Mastro's Restaurants, Del Frisco's Double Eagle Steakhouse, Morton's The Steakhouse, The Palm, McCormick & Schmick's, Landry's Seafood House, The Oceanaire Seafood Room, and Saltgrass Steak House.

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This article first appeared on CultureMap.com.