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Wellspring Capital Management Acquires Resco Products
September 7, 2011
NEW YORK, NY--Wellspring Capital Management LLC (“Wellspring”) and Hancock Park Associates (“HPA”) today announced that Wellspring has acquired Resco Products, Inc. (“Resco" or the "Company”), a leading North American producer of value-added refractory solutions, from HPA. Financial terms of the transaction were not disclosed.
Established in 1946, Resco is a leading provider of custom-designed premium-quality shaped and unshaped refractory products for a broad range of industries and applications. Its broad product portfolio, investment in technological innovation, end-application expertise and reputation for premium customer services make the Company its customers' supplier of choice in both steel and non-steel market segments. Resco has built its operations through both acquisitions and organic growth initiatives.
William Brown, President and CEO of Resco, said, “We are excited about the opportunity to partner with Wellspring, which has an in-depth understanding of our business and industry. We are very pleased to have a long-term oriented and experienced strategic investor that will support our strategy of producing high quality products.”
Carl Stanton, a Managing Partner of Wellspring, said, “We are thrilled to invest in such a high-quality company in the refractory market where we have seen consistent growth. Resco’s customer relationships span decades and it is a critical supplier to major North American steelmakers and general industrial companies alike. We look forward to supporting Resco’s further growth throughout North America and internationally.”
Mike Fourticq, Sr. Managing Partner of Hancock Park Associates, said, “When we acquired Resco in 2005, HPA believed that the management team could grow the company significantly and achieve a much higher level of sales and profitability. Obviously their results over these past six years have affirmed that belief. I am confident that Wellspring’s recognized experience in building stronger, more sustainable businesses through organic growth and acquisitions will enable Resco to achieve its full potential.”
Hancock and Resco were advised by Credit Suisse Securities (USA), LLC. Wellspring was advised by Paul, Weiss, Rifkind, Wharton & Garrison LLP (legal advisor).
About Resco Products, Inc.
Founded in 1946 and headquartered in Pittsburgh, Pennsylvania, Resco is a leading North American producer of value-added refractory solutions. Refractories are consumable materials used as protective linings for high temperature furnaces, containers carrying molten metals and a range of other industrial applications in harsh operating environments. The Company's products are sold under proprietary brands that are well-recognized in their segments for high quality and performance. For additional information, please visit www.rescoproducts.com.
About Wellspring Capital Management
Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. The firm's objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. For additional information, please visit www.wellspringcapital.com.
About Hancock Park Associates
HPA is a Los Angeles based private equity firm founded in 1986 with over $400 million invested in middle market companies since 2002. With offices in Los Angeles and Houston, the firm's principals have extensive experience investing in and partnering with management teams across a broad range of industries. For additional information please visit www.hpcap.com.
For Wellspring Capital Management
Kekst and Company
Mark Semer / Micheline Tang
For Hancock Park Associates
Hancock Park Associates
Mike Fourticq Jr.