Elon Musk’s SpaceX, the Fireball whiskey maker and nine other newcomers rocket into the ranks of Forbes’ annual list of the largest private companies.
By Andrea Murphy, Forbes Staff
SpaceX, the rocket firm founded and run by Elon Musk, has nabbed billions of dollars of government contracts lately, helping more than double its estimated revenues to a recent $4.6 billion. That’s enough to propel the Hawthorne, California-based rocket company, which controls 80% of the domestic market for rocket launches and also operates Starlink’s fast growing satellite business, into the ranks of America’s Largest Private Companies for the first time at No. 145 on the list. It is one of 11 newcomers this year.
Also making its debut is Sazerac, the liquor company owned by billionaire William Goldring, which debuts at No. 207 with estimated revenue of $3 billion. Best known for bourbons like Buffalo Trace, Blanton’s and Pappy Van Winkle, New Orleans-based Sazerac also sells vodka, gin, rum, cognac and port. One of its most popular brands is Fireball, a cinnamon flavored whiskey, which accounts for 45% of the flavored whiskey market.
Cargill comes in at No. 1, the third consecutive year that the agribusiness firm has taken the top spot. This is perhaps no surprise–it’s held the number one rank 36 of the 39 years that Forbes has been tracking private companies. Revenues for Cargill’s most recent fiscal year ending May 2023 were a record $177 billion, up 7% over last year. Some of that growth was due to two significant acquisitions it made in 2023. It purchased Owensboro Grain Company, a Kentucky-based and family-owned soybean refinery and processing facility, in January for an undisclosed sum. In July, Cargill bought the bio-based industrial business of Croda, a British chemical manufacturer, for a reported $1 billion.
Koch Industries keeps its No. 2 spot, with revenues of $125 billion. Sales at the family-owned company were flat year-over-year. Grocery store giants Publix Supermarkets and H-E-B take the No. 3 and No. 5 spots, respectively. H-E-B returns to the top five after dropping to No. 6 in 2022. Revenues at Publix increased by 13.6% to $54.5 billion. This was driven primarily by sales at new locations;. the Florida-based company opened 40 stores in seven states in 2022. Mars, the candy, food and petcare firm, comes in at No. 4, unchanged from a year ago.
One thing SpaceX, Sazerac and the top five companies all have in common: billionaire owners. Altogether 59 of these private companies are billionaire owned, including arts and crafts chain Hobby Lobby (No. 75) run by founder David Green, Panda Restaurant Group (No.112) started by Andrew and Peggy Cherng in 1983 and medical device maker Arthrex (No. 184) owned by Reinhold Schmieding.
There are 258 companies on this year’s private companies list, up from 246 last year. Inclusion on the list is based on having $2 billion or more in revenue from the most recent fiscal year. For 85% of the list members, that means revenues for calendar 2022. Others have fiscal years that ended as recently as October 2023.
In addition to the 11 newcomers, another four companies returned to the list after dropping off in prior years. That includes Oxbow, the petroleum coke processing company that fell off in 2020 and returns at No. 224 with revenue of $2.7 billion. Its founder and CEO William (Bill) Koch is the brother of Charles Koch, CEO of Koch Industries, which ranks No. 2 on the list. He started Oxbow after selling his stake in Koch Industries to his brothers Charles and David (d. 2019) in 1983 for $470 million. Bill Koch and his brother Frederick Koch (d. 2020) initiated a lengthy legal battle over the payout amount that was finally settled confidentially in 2001.
Holland, Michigan-based furniture maker Haworth also fell off in 2020 and returns this year at No. 231, with reported record sales of $2.5 billion, a 27.5% increase over 2021, thanks to growth in all business segments, including office, home and hospitality.
Construction companies had another good year. Average sales growth for the group increased by 18%, compared to 16% last year. ABC Supply, one of the nation’s largest wholesale distributors of roofing, siding and windows (owned by billionaire Diane Hendricks), posted double digit growth for the second consecutive year. Revenue for calendar year 2022 was $18.5 billion, up 25.9%, helping it move up five spots to No. 21.
The biggest gainer this year was Colonial Group, which moves up 73 spots to No. 126. The Georgia-based company is involved in marketing petroleum and natural gas products, terminal services for dry bulk and liquids, tug and barge services and owns Enmarket, a chain of convenience stores. Founded in 1921, today the firm is run by Christian Demere, the fourth generation of the family to head the company.
Musk’s social media firm X (formerly known as Twitter) appears on the list for the second year in a row. This year X is ranked No.149– down from No. 104 last year– because revenue dropped to an estimated $4.4 billion from $5 billion. The social media company has struggled since Musk took over in October 2022. Traffic is reportedly down, and Musk has said publicly that advertising revenue has fallen.
Dropping out of the ranks entirely is Pilot, ranked No. 5 last year, not because business faltered but due to new ownership. Warren Buffet’s Berkshire Hathaway purchased a minority stake (38.6%) of Pilot from the billionaire Haslam family in 2017 and completed the purchase of an additional 41.4% in January. Altogether, Berkshire Hathaway paid nearly $11 billion for 80% of Pilot. The Haslam family, who can sell their remaining 20% stake as early as next year, is suing Berkshire Hathaway, arguing that a new accounting method used by Berkshire to calculate how much it would pay for the remaining 20% is artificially depressing earnings, an important factor because earnings would set the purchase price for the remaining stake. Berkshire Hathaway didn’t respond to a request for comment about the allegations.
The other two drop offs this year were Sierra Nevada, the aerospace and defense company, and convenience store chain Kum & Go. Sierra Nevada’s estimated revenues fell below the $2 billion threshold for inclusion on the list due in part to the fact that its space division, Sierra Space, was spun off in 2021. The Nevada-based company is run by billionaire husband-and-wife Fatih and Eren Ozmen. Iowa-based Kum & Go, ranked No. 184 in 2022, was sold to Maverik, another gas and convenience store chain, in August for an undisclosed amount. Maverik is a subsidiary of FJ Management, a newcomer to the list at No. 81.
METHODOLOGY
Forbes’ list of the largest private companies in America includes U.S.-based firms with revenue of $2 billion or more in the most recent fiscal year. Most of the companies have no plans to change their private status. Many private businesses like the freedom from quarterly earnings reporting and reduced obligations to Sarbanes-Oxley reporting requirements. (Private companies with publicly traded debt–including some of the companies on this list– must file financial statements with the Securities and Exchange Commission.) We exclude companies based outside the U.S., companies that don’t pay income tax (like Mohegan Tribal Gaming Authority), mutually owned companies (like State Farm Insurance), cooperatives (like Land O’Lakes), companies with fewer than 100 employees, and companies that are more than 50% owned by another public, private or non-U.S. company. We also leave out companies whose primary business is auto dealerships or real estate investment and/or management. We do include companies that are majority owned by private equity companies, such as Medline Industries. Whenever possible, our revenue figures for each company exclude sales of publicly traded subsidiaries. Our data sources include voluntary disclosures by companies, Securities and Exchange Commission filings and estimates from Forbes researchers and outside sources.