Wellspring Acquires SupplyOne
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Wellspring Acquires SupplyOne

Wellspring Capital Management has closed on its acquisition of SupplyOne, a distributor and converter of packaging products.

SupplyOne is a manufacturer of corrugated products, plastic thermoforming trays and clamshells, and pressure-sensitive labels. The company also distributes a wide variety of packaging supplies, packaging equipment, safety products, and janitorial and sanitary supplies. Typical customers of SupplyOne are middle-market companies in the food & beverage, manufacturing, consumer products, e-commerce and healthcare end markets.

SupplyOne was founded in 1998 by CEO Bill Leith and is headquartered near Philadelphia in Newtown Square, PA (www.supplyone.com).

“The acquisition of SupplyOne is an exciting opportunity to build on Wellspring’s successful track record in the packaging sector,” said John Morningstar, a Managing Partner of Wellspring who leads the firm’s investment effort in the packaging sector. “SupplyOne has built an impressive platform over the past two decades, with a strong geographic footprint across the United States, and a unique ability to add value to its customers’ businesses by lowering total packaging costs.  We are excited to support SupplyOne through its next phase of growth.”

“There are strong industry tailwinds for SupplyOne’s core products and industry-leading packaging programs,” said Matthew Harrison, a Partner of Wellspring. “SupplyOne is exceptionally well positioned to capitalize on these compelling trends.  We look forward to partnering with the company’s management team, led by Bill Leith, to pursue a range of growth opportunities, including internal initiatives and select acquisitions.”

Antares Capital (www.antares.com) was the administrative agent and lead arranger on a $170 million senior secured credit facility to support the acquisition of SupplyOne by Wellspring. “We have worked with Antares in the past and were pleased to have them lead the financing for this transaction,” said Mr. Harrison. “Antares was able to make a significant financial commitment, as well as deliver a structure that provides SupplyOne with flexibility to expand and execute on its acquisition strategy.”

Wellspring invests across a range of industries and typically pursues transactions ranging from $100 million to as much as $1.5 billion in enterprise value. The firm is active with buyouts of private companies, acquisitions of divisions or subsidiaries of public companies, and going-private transactions; partnering with entrepreneurs to provide capital and guidance for expansion; purchasing equity from shareholders of family-owned businesses for financial planning needs; and acquiring companies or divisions of larger companies out of bankruptcy or restructuring. The firm was founded in 1995 and is based in New York (www.wellspringcapital.com).

In January 2018, Wellspring closed its latest fund, Wellspring Capital Partners VI LP, at its hard cap of $1.4 billion.  The firm’s earlier fund closed in 2011 with $1.2 billion of capital.

© 2018 Private Equity Professional | February 7, 2018

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