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Wellspring Capital Management Refinances United Sporting Companies’ Existing Debt
October 1, 2012
NEW YORK, NY--Wellspring Capital Management LLC (“Wellspring”) today announced that its portfolio company, United Sporting Companies (“USC”), the holding company for Ellett Brothers, LLC (“Ellett”) and Jerry’s Sport Center Inc. (“JSC”), has completed the refinancing of all of its existing debt. The refinancing was effected through the purchase and retirement of $103.0 million of debt. The new debt does not mature until November 2017. In addition, the Company paid a dividend to its shareholders ensuring a strong return on Wellspring's investment. USC also has significant financial flexibility to continue investing in the growth of its business.
William F. Dawson, Jr., a Managing Partner of Wellspring and Board member, said, “We are pleased with the strength of the Company’s performance and that its strong free cash flow allowed us to pay a dividend to our investors. We are also pleased that the terms of the financing offer significant flexibility to maximize returns to our investors.”
Alexander E. Carles, a Partner of Wellspring, added, “Since combining Ellett and JSC in 2009 to form USC, we have supplemented the management team and streamlined both businesses to capitalize on favorable trends in the industry. The refinancing will allow us to continue those efforts as well as explore target acquisitions that expand the geographic footprint and diversify the product portfolio.”
Bradley P. Johnson, Chief Executive Officer, President and Chairman of the Board said, “The refinancing of our existing debt is a significant development for the Company and was made possible by the tremendous efforts of our lenders and investors. Our new capital structure will provide us with the flexibility to continue the tremendous growth momentum we have had in 2012.”
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.
About United Sporting Companies
United Sporting Companies is a holding company for Ellett and JSC. Ellett and JSC are wholesale distributors, selling firearms, shooting accessories, hunting supplies and marine accessories to retail dealers in all fifty states. For more information please visit www.ellettbrothers.com or www.jerryssportscenter.com.
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