Wellspring Capital Management Analysis
What is Wellspring Capital Management?
Wellspring Capital Management company profile.
Employees
37
Founded
1995
Investment Focus
Wellspring Capital Management primarily focuses on middle-market investments, targeting private company buyouts, public-to-private transactions, corporate carve-outs, and add-on acquisitions. The firm invests in sectors such as General Industrial, Business Services, Healthcare Services, Packaging, Distribution, and Consumer/Restaurants. Their investment strategy emphasizes acquiring fundamentally sound companies with clear opportunities for earnings growth and value creation, typically involving investments ranging from $100 million to $1 billion in enterprise value and $20 million to $100 million in EBITDA. They employ a moderate use of leverage and implement a strategic plan called the "Wellspring Game Plan" to drive operational improvements post-acquisition.
Assets Under Management
$3 billion
Investment Geography
Wellspring Capital Management primarily invests in companies headquartered in North America. While some of their businesses may have an international scope, their main focus is on the North American market.
Key Portfolio Companies
- Pinnacle Service Brands - The eighth largest Planet Fitness franchisee, offering a high-value, low-price fitness club membership in a "judgement free" environment.
- Batteries Plus - A national franchisor of brick-and-mortar retailers specializing in batteries and related products, installation, and repair services.
- Caring Brands International - The largest global homecare franchisor operating in the U.S., U.K., Ireland, and Australia.
- Pentec Health - Provides patient-specific, compounded sterile medications.
- Coverall - A leading franchise concept in commercial cleaning, recognized nationally.
- Rohrer Corporation - A leader in high visibility consumer packaging solutions.
- HealthPRO Heritage - A national provider of contract therapy services across the post-acute care continuum.
- Steele Solutions, Inc. - Designs and manufactures complex steel infrastructure primarily for e-commerce distribution and warehousing facilities.
- Cadence Petroleum Group - Distributor of lubricants and related products in the U.S. Southeast and Mid-Atlantic regions.
- Milan - Provides dedicated contract transportation and logistics solutions to Fortune 500 companies.
- Paragon Films - Manufacturer of high-performance stretch film.
- Lucky Strike - Operates upscale entertainment venues with 21 locations in the United States.
- RAYUS Radiology - The leading subspecialty practice for advanced diagnostic and interventional radiology.
- SupplyOne - Manufacturer of custom corrugated products and related packaging solutions.
- Bellwether Behavioral Health - A specialized platform serving individuals with high acuity intellectual and developmental disabilities.
- Hoffmaster - A North American designer and supplier of premium disposable tableware and party décor.
- Help At Home - A U.S. home care provider delivering in-home care to seniors and persons with disabilities.
- Airswift - A global workforce services partner in the energy, process, and infrastructure sectors.
- Qualitor - Provides automotive aftermarket products including wiper blades and brake hardware.
- API Heat Transfer - Manufacturer of heat exchangers and components.
- Resco Products - A leading producer of value-added refractory solutions.
- Performance Food Group - The third largest foodservice distribution company in the U.S.
- JW Aluminum Company - Producer of specialty flat-rolled aluminum products.
- Crosman Corporation - Designer and manufacturer of airguns and related consumables.
- Tradesmen International - Provider of contingent skilled craftsmen to commercial construction and industrial contractors.
- Great Lakes Caring - A premier provider of in-home health care in the U.S.
- ProAmpac - A global flexible packaging company.
- National Seating & Mobility - Provides customized wheelchairs and adaptive seating systems.
- Prolamina Corporation - Focused on value-added packaging for food and medical markets.
- Chemaid Laboratories, Inc. - Contract manufacturer of specialty personal care products.
- Checkers Drive-In Restaurants, Inc. - The largest double drive-thru restaurant chain in the U.S.
- Hess Print Solutions, Inc. - A printer serving the education and commercial print markets.
- Cleaver Brooks, Inc. - Specializes in energy-efficient boiler systems.
- Stripes Holdings, LLC - The largest independent convenience store operator in Texas.
- Omni Energy Services Corp. - Offers integrated services to geophysical companies.
- Neucel Specialty Cellulose Ltd. - Producer of specialty dissolving wood pulp.
- Dave and Buster’s, Inc. - Operator of large-format restaurant/entertainment complexes.
- Vatterott College - A private for-profit post-secondary education company.
- Vistar Corporation - Provider of candy, snacks, and convenience food items.
- Edwin Watts Golf Shops, LLC - Retailer of golf equipment and accessories.
- Tube City IMS Corporation - Provider of outsourced services to the steel industry.
- Residential Services Group, Inc. - Provider of HVAC and plumbing services.
Notable Exits
- Susser Holdings Corporation - Acquired in December 2005 and went public in October 2006. The exit method involved a public secondary offering where Wellspring sold 5.75 million shares at $36.00 per share, completing the investment with a distribution of approximately 850,000 remaining shares to its limited partners.
- Tradesmen International - Sold to Blackstone on January 3, 2017. Tradesmen is a leading provider of outsourced skilled craftsmen to non-residential construction and industrial contractors in North America.
- ProAmpac - Sold to Pritzker Group Private Capital on October 17, 2016. ProAmpac is a global flexible packaging company formed through the merger of Prolamina Corporation and Ampac Holdings.
- National Seating & Mobility - Sold to Court Square Capital Partners on August 10, 2016.
- Help at Home - Acquired by Centerbridge Partners and The Vistria Group on October 30, 2020. Help at Home is a provider of home care and community-based services across 13 states.
- Caring Brands International - Acquired on October 25, 2021.
Recent Fundraising
$975 million
Management Team
The management team of Wellspring Capital Management includes the following members:
- Alexander E. Carles, Managing Partner
- John E. Morningstar, Managing Partner
- Matthew G. Harrison, Managing Partner
- Naishadh R. Lalwani, Managing Partner
- Jeffrey A. Gould
- Liam O'Sullivan
- Lucas J. Bailey
- Marlene L. Reihard
