NEW YORK--(BUSINESS WIRE)--Wellspring Capital Management Group LLC (“Wellspring”), a New York-based private equity firm, announced that on May 29, 2020, it closed the acquisition of Steele Solutions, Inc. (“SSI” or the “Company”), a value-add supplier into the industrial automation sector. Financial terms of the transaction were not disclosed.
Founded in 1996 and headquartered in Milwaukee, Wisconsin, Steele Solutions is a leading 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. A large portion of SSI’s project activity services the continued growth in and automation of the nation’s largest e-commerce delivery networks. With its own dedicated engineering and technical services teams, SSI is deeply involved in the design and customization of its steel systems to meet unique facility requirements, acting as a value-add partner to its customers and end users.
John Morningstar, Managing Partner at Wellspring, said, “We are thrilled to be able to support Steele Solutions in its next phase of growth. Kevin O’Neill, Mike Thelen, and the rest of the SSI team have built an impressive business over the last 25 years, rooted in strong customer relationships and attractive end markets that have allowed the Company to consistently excel, even through uncertain economic periods like the current one. We congratulate the entire team on their accomplishments to date and look forward to a great partnership.”
Seth Pearson, Partner at Wellspring, added, “SSI represents an exciting opportunity to partner with a proven market leader in an attractive niche of the industrial automation sector. The projects and customers SSI serves are at the heart of well-documented and long-term trends towards e-commerce and automation. More than a typical industrial supplier, SSI acts as a true partner to its customers through its deeply collaborative, engineering-based approach. With Wellspring’s long history in industrial investing, we are confident that we can be a similarly collaborative and supportive investment partner for the Company over the coming years.”
Kevin O’Neill, CEO of Steele Solutions, said, “We are very pleased to welcome Wellspring as a partner. We are deeply proud of the reputation and customer relationships SSI has built over the prior decades, and we thank all our employees and partners for the incredible efforts and support up to this point. With Wellspring’s experience and committed capital backing, I believe that SSI is as well-positioned as ever to capitalize on the exciting market opportunity that lies ahead of us.”
Kirkland & Ellis LLP served as legal counsel to Wellspring. Baird served as financial advisor to Steele Solutions with respect to the transaction and Godfrey & Kahn S.C. served as legal counsel.
About Wellspring Capital Management
Wellspring Capital Management is a leading private equity firm headquartered in New York. Since its founding in 1995, Wellspring has raised over $4.0 billion of initial capital commitments through six private equity funds. Over the past 20 years, Wellspring has invested in over 35 platform investments across various segments of the U.S. and global economies. Wellspring’s objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring seeks to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm provides management teams with top-line support, M&A experience, financial expertise and access to resources. For additional information, please visit www.wellspringcapital.com.