Secondary Buyout • Transportation

Wellspring Capital Management Acquires Ascend Leasing

On September 30, 2019, private equity firm Wellspring Capital Management acquired transportation company Ascend Leasing from HCI Equity Partners

Acquisition Context
  • This is Wellspring Capital Management’s 1st transaction in the Transportation sector.
  • This is Wellspring Capital Management’s 40th transaction in the United States.
  • This is Wellspring Capital Management’s 2nd transaction in Tennessee.

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M&A Deal Summary

Date September 30, 2019
Target Ascend Leasing
Sector Transportation
Buyer(s) Wellspring Capital Management
Sellers(s) HCI Equity Partners
Deal Type Secondary Buyout

Target Company

Ascend Leasing

Nashville, Tennessee, United States
Ascend Leasing is a provider of regional transportation and logistics solutions, specializing in truckload and warehousing and distribution services. Ascend Leasing was founded in 1969 and is based in Nashville, Tennessee.
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Buyer Overview 1

Buyer

Wellspring Capital Management

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1995
PE ASSETS 4.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Wellspring Capital Management is a mega-sized private equity firm that focused on a variety of transaction situations. The Firm will consider buyouts of private companies, acquisitions of divisions or subsidiaries of public companies, shareholder liquidity needs, partnering with entrepreneurs for growth opportunities, and special situations. Wellspring does not have any sector preferences and is capable of pursuing transactions valued up to $1 billion. Wellspring Capital Management was formed in 1995 and is based in New York City.


Deal Context for Buyer #
Overall 45 of 54
Sector: Transportation 1 of 1
Type: Secondary Buyout 17 of 23
State: Tennessee 2 of 2
Country: United States 40 of 49
Year: 2019 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-06-11 United Sporting Companies

Chapin, South Carolina, United States

United Sporting Companies is a nationwide distributor of hunting, outdoor, marine and tackle products. The Company operates through two subsidiaries, Ellett Brothers and Jerry’s Sport Center which were founded in 1933 and 1949, respectively.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-05-29 Steele Solutions

South Milwaukee, Wisconsin, United States

Steele Solutions is a designer and manufacturer of complex steel infrastructure in distribution, warehousing, and manufacturing facilities nationwide. SSI’s offerings include large steel platforms and mezzanines, as well as other structural steel systems that generally support the use of automation technologies in industrial facilities. Steele Solutions was founded in 1996 and is based in South Milwaukee, Wisconsin.

Buy -

Seller Profile 1

SELLER

HCI Equity Partners

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
PE ASSETS 1.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

HCI Equity Partners is a private equity group that targets lower middle-market industrial product and service companies throughout North America. HCI is a 'hands on' investor, looking to assist portfolio companies with growth strategies and improving profitability. The Firm seeks opportunities with $20 to $200 million in revenues and strong management in place. Specific areas of interest include aerospace/defense, automotive and commercial vehicle suppliers, industrial distribution, infrastructure, power generation, test/measurement equipment, and transportation. HCI Equity Partners (fka Thayer | Hidden Creek Partners) is based in Washington DC.


Deal Context for Seller #
Overall 20 of 30
Sector: Transportation 6 of 9
Type: Secondary Buyout 6 of 9
State: Tennessee 1 of 1
Country: United States 18 of 28
Year: 2019 5 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-08-30 Naumann Hobbs Material Handling

Phoenix, Arizona, United States

Naumann Hobbs Material Handling is a full-service material handling dealership that leases, sells, and services a variety of electric and internal combustion forklifts and other commercial products. Naumann Hobbs operates along five lines of business that work together to provide the most attractive value proposition in this sector in the southwestern United States. Naumann Hobbs Material Handling was founded in 1949 and is based in Phoenix, Arizona.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2019-11-04 Dynamic Systems

Poestenkill, New York, United States

Dynamic Systems, Inc. is a designer and manufacturer of dynamic thermal-mechanical testing and physical simulation systems used for metallurgical analyses in a wide variety of industries. Dynamic Systems was founded in 1957 and is based in Poestenkill, New York.

Sell $41M