Star Equity Holdings buys PD Machine for cash and preferred stock
Star Equity Holdings, Inc., a listed company in staffing and employment services, bought PD Machine, LLC, a machine shop in Vernal, Utah, on October 23, 2026 sec.gov. The company paid the sellers $350,000 in cash and issued 75,000 shares of its 10% Series A Cumulative Perpetual Preferred Stock, with $50,000 of the cash and 5,000 of the shares held in escrow.
Deal facts. Buyer: Star Equity Holdings, Inc., a listed company in staffing and employment services. What was bought: named in the filing. Signed: October 23, 2026. Consideration: In connection with the closing of the transaction, excluding the separate real-estate transaction described below, the Company paid the Sellers aggregate consideration of (i) $350,000 (the "Cash Consideration") and (ii) issued 75,000 shares (the "Stock Consideration") of the Company's 10% Series A Cumulative Perpetual Preferred Stock, par value $0.001 per share (the "Series A Preferred Stock"), subject to customary adjustments for debt, cash on hand, transaction expenses and net working capital. At the closing, $50,000 of the Cash Consideration and 5,000 shares of the Stock Consideration were held in escrow to satisfy the Sellers' indemnification and purchase-price adjustment obligations under the Purchase Agreement. Financing: not stated in the filing. Lender or agent: not named in the filing. Conditions: In connection with the closing of the transaction, excluding the separate real-estate transaction described below, the Company paid the Sellers aggregate consideration of (i) $350,000 (the "Cash Consideration") and (ii) issued 75,000 shares (the "Stock Consideration") of the Company's 10% Series A Cumulative Perpetual Preferred Stock, par value $0.001 per share (the "Series A Preferred Stock"), subject to customary adjustments for debt, cash on hand, transaction expenses and net working capital.
Star Equity Holdings paid the sellers $350,000 in cash and issued 75,000 shares of its 10% Series A Cumulative Perpetual Preferred Stock, par value $0.001 per share, subject to customary adjustments for debt, cash on hand, transaction expenses and net working capital. Star Equity Holdings held $50,000 of the cash and 5,000 of the shares in escrow at closing to satisfy the sellers' indemnification and purchase-price adjustment obligations. The 8-K does not state how the cash portion was financed, and it names no lender or agent.
Star Equity Holdings described PD Machine as a machine shop in Vernal, Utah, providing specialized welding, repair, rebuilding, and machining services for drilling and other equipment, primarily in Utah and the surrounding states. The 8-K does not state a separate strategic rationale for the purchase.
For context. U.S. jobs in administrative, support and waste management services stood at 9,018.6 thousand in September 2026, according to the Bureau of Labor Statistics (Current Employment Statistics). That is down 15.3 thousand jobs from August 2026 and up 48.5 thousand jobs from September 2025.
Star Equity Holdings' purchase of PD Machine shows how a listed services company pays for a smaller services firm: partly in cash, partly in its own preferred stock, and with a portion of both held in escrow against purchase-price adjustments. Star Equity Holdings is a staffing and employment services company, a services business where software is taking on more of the work customers pay for, and it is using its own equity as currency to buy a machine shop whose value sits in the specialized welding, repair, rebuilding, and machining work it performs for drilling and other equipment. For an owner of a similar welding, repair, or machining business, the structure matters as much as the stated consideration: a buyer that pays in preferred stock and holds back cash and shares in escrow is asking the seller to stand behind the working capital, debt, and cash figures at closing and to share in the buyer's future.
Watch for the separate real-estate transaction the 8-K describes, involving Davis Rentals, LLC and the company's new real-estate subsidiary, and for the release of the escrowed cash and shares once the purchase-price adjustments settle.