CFO out at company that went public 5 months ago

Target Hospitality has replaced its CFO, Andy Aberdale, 5 months after going public via a reverse takeover. He has been replaced by Eric Kalamaras who was the CFO at American Midstream in Houston, until it was taken private on July 23, 2019.



Target transaction

The company is based in The Woodlands and was acquired by a Platinum Eagle, a blank check company for $1.3 billion. Target provides rental modular accommodation to the US oilfields but with premium catering and other added-value services. It has 20 facilities, including 14 in the Permian Basin. It is also an approved government vendor, supplying accommodation that houses asylum-seeking families.

There were actually two businesses acquired in the deal, Target Lodging and Signor Holdings, which are being consolidated together under the Target name and management. The Target business was acquired for $820 million, Signor for $491 million.

The business currently has a market cap of $575 million and an enterprise value of $956 million.

Aberdale severance package

Mr Aberdale had been the CFO since October 2010. The press release issued by the company stated that Mr Aberdale has decided to spend more time with his family in Boston, Massachusetts.  The separation agreement doesn’t give any indication that the decision was made by Mr Aberdale.

Mr Aberdale will receive

  • Severance pay of $400,000 (1 year’s salary)
  • 2019 annual bonus ($300,000)
  • Vesting of 25% of the stock options granted on May 21, 2019 (option price is $10.83)
  • Vesting of 25% of the restricted stock units granted on May 21, 2019 (value $33,000)

It should be noted that Mr Aberdale also received an $11 million cash bonus that was paid by the seller of the Target Lodging business for his role in building up and selling the business, so he can certainly afford to spend time with the family. He also owned a 4.8% stake in Target Lodging.

Kalamaras compensation

Mr Kalamaras will receive a base salary of $415,000 and a one-time sign-on bonus of $93,187. He will also receive an equity award worth $500,000. The base salary is a big raise from what he was making at American Midstream.

SEC filing – Target Hospitality CFO

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