4 Houston firms land on Forbes’ list of America’s largest private companies

BIG BIZ IN H-TOWN

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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This article originally ran on CultureMap.

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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This article originally ran on CultureMap.

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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This article originally ran on CultureMap.

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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4 Houston-area institutions get $8M for cancer research facilities

fighting cancer

Cancer research capabilities in the Houston area just got an $8 million boost.

On Wednesday, May 20, the Cancer Prevention and Research Institute of Texas (CPRIT) awarded $8 million in grants to institutions in Houston and Bryan for the creation or expansion of so-called “core” cancer research facilities.

“Core facilities provide shared access to advanced technology, equipment, and scientific expertise that may not be available at every institution,” CPRIT says. “These core facilities are vital to not only cancer research but also to the study of diseases beyond cancer.”

Houston-area recipients of these $2 million grants are:

  • A facility at the University of Texas Health Science Center for preclinical support of cancer researchers in Texas to evaluate new safe, effective drugs and drug combinations.
  • The Accelerator for Cancer Therapeutics, operated by Houston’s Texas Medical Center Foundation. The accelerator helps researchers and startups move innovative cancer treatments from the lab to clinical trials.
  • Rice University’s Genetic Design & Engineering Center in Houston. The center enables researchers to collaborate on studies of custom DNA for cancer treatment.
  • A facility at the Texas A&M University System’s Health Science Center in Bryan that aims to speed up the development of cancer therapies.

In addition to those grants, the University of Texas M.D. Anderson Cancer Center, Methodist Hospital Research Institute, Baylor College of Medicine, and Rice University shared $21 million to recruit cancer researchers from other institutions.

The largest of those grants—totalling $4 million—went to M.D. Anderson for the recruitment of renowned cancer researcher Andre Nussenzweig from the National Institutes of Health. His research focuses on how DNA damage and faulty DNA repairs lead to cancer.

Here are the totals for the other CPRIT grants awarded in the Houston area:

  • $12.8 million to Houston-based Indapta Therapeutics for the development of an off-the-shelf therapy that naturally kills cancer cells, combined with an immunity-targeting agent for a type of leukemia.
  • $11.1 million to MD Anderson, including $5 million for a statewide platform to improve long-term health outcomes in adolescents and young adults who survived cancer.
  • $8.4 million to Baylor College of Medicine, including $4.8 million for two training programs for cancer researchers.
  • $6.25 million to UT Health Houston, including $4 million for a biomedical informatics and genomics training program for cancer researchers.
  • $4.4 million to the Texas A&M Health Science Center’s Houston campus, including $2.4 million for a cancer therapeutics training program.
  • $2.75 million to Rice, including $250,000 for a study of ovarian cancer.
  • $2 million to Houston-based March Biosciences for the development of a targeted therapy for treating T-cell lymphoma.
  • $1.15 million to the University of Houston, including $900,000 for a platform for detection of lung cancer.
  • $900,000 to Texas A&M in Bryan to conduct clinical drug trials in rural and underserved communities around the state.
  • $800,000 to Houston- and Israel-based Xerient Pharma for the development of an oral form of a cell-protecting drug called amifostine to protect the upper GI tract from radiation damage during pancreatic cancer treatment.
  • $659,000 to Missouri City-based OmniNano Pharmaceuticals for the development of a two-drug combination to treat the most common form of pancreatic cancer.
  • $250,000 to the University of Texas Medical Branch at Galveston for a novel therapeutic to prevent colitis-related colorectal cancer.

Axiom Space launches Japanese subsidiary, names leadership

Axiom Space is setting up a Japanese subsidiary to tap into billions of dollars worth of business opportunities in the vast Asia-Pacific region. The company’s new office in Japan will open July 1.

“For the Asia-Pacific region, an Axiom Space presence in Japan means a long-term, direct path to low-Earth orbit for research, for industry, for astronauts, and a partner committed to building that future together with Japan,” Jonathan Cirtain, president and CEO of Axiom Space, said in a news release.

Asia-Pacific spaceflight leaders include Japan, China, India and South Korea.

Until committing to the Asia-Pacific subsidiary, Axiom focused primarily on the U.S. market for space exploration equipment, technology and services. Axiom is building the successor to the International Space Station (ISS), and it provides human spaceflight services and develops next-generation spacesuits.

Fortune Business Insights estimates the Asia-Pacific market for space technology was valued at $155.3 billion in 2025.

“The region is rapidly expanding due to rapidly expanding government space programs, increasing private sector participation, and rising demand for satellite services across densely populated regions,” says Fortune Business Insights, a market research firm.

The region’s combination of strategic investments, market demand and emerging entrepreneurial systems positions Asia-Pacific “for the fastest growth in the global market,” Fortune Business Insights says.

The market research firm pegs the U.S. market for space technology at $251.8 billion in 2025, making it the world’s largest player in that sector.

Veteran Japanese astronaut Koichi Wakata will lead Axiom Space Japan as chief technology officer in the Asia-Pacific region. The Japanese subsidiary will work with government agencies, research institutions, and industrial partners in Japan to expand hardware development and manufacturing, microgravity research and orbital computing.

Wakata was the Japanese space agency’s first program manager for ISS and the station’s first Japanese commander. He also contributed to the construction of ISS, including the Japanese experiment module Kibo. Wakata retired from the Japanese agency, JAXA, in March 2024.

“Japan intends to remain a leading nation in human space exploration post-ISS, and Japanese industry and academia are ready to play a central role in the commercial era,” Axiom Space said in the release. “Axiom Space Japan is how the company will meet that ambition with a long-term, on-the-ground presence.”

Houston investment firm closes $105M energy venture fund

seeing green

Houston-based investment firm Veriten has announced the initial close of its second flagship energy venture fund with more than $105 million in capital commitments.

Fund II will build on Veriten’s initial fund and aim to support “scalable technology solutions for energy, power and industrial applications,” according to a company news release.

"Our differentiated network, research-driven process, and first principles approach to investing are having an impact across multiple verticals including traditional energy, electrification, and industrial technology. Fund II builds on that platform,” John Sommers, partner, investments at Veriten, added in the release. “In this environment, the differentiator isn't capital – it's all about connectivity, deep sector expertise, and an economically-driven approach. As new technologies and approaches develop at breakneck speed, the need for more reliable, affordable energy and power continues to grow dramatically. The current backdrop accentuates the need for Veriten's solution."

Veriten is supported by over 50 strategic partnerships in the energy, power, industrial and technology sectors, including major players like Halliburton and Phillips 66.

"Veriten continues to build a differentiated platform at the intersection of energy, technology and industry expertise," Jeff Miller, chairman and CEO of Halliburton, said in the release. "We were early believers in the team and their ability to identify practical solutions to real challenges across the energy value chain. As all industries increasingly adopt digital tools, automation and AI-enabled technologies to improve performance and execution, we are proud to partner with Veriten again to help accelerate high-impact solutions across the broader energy landscape."

Veriten closed its debut fund, NexTen LP, of $85 million in committed capital in October 2023. It was launched in January 2022 by Maynard Holt, co-founder and former CEO of the energy investment bank Tudor, Pickering, Holt & Co.

It has invested in Houston-based AI-powered electricity analytics provider Amperon and led a $12 million Seed 2 funding round for Houston-based Helix Technologies to scale manufacturing of its energy-efficient commercial HVAC add-on earlier this year. In the past year it has contributed to funding rounds for San Francisco-based Armada and Calgary-based Veerum.

Veriten also named Nick Morriss as its new managing director earlier this month. Morriss most recently served as vice president of business development at next-generation nuclear technology company Natura Resources and spent nearly 20 years at NOV Inc.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.

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