BOCA RATON, FL Sun Capital Partners, Inc. (“Sun Capital,”) a leading private investment firm specializing in leveraged buyouts and investments in market–leading companies, today announced that affiliated portfolio company ThermaSys Corporation (“ThermaSys”) , a leading U.S. manufacturer of highly engineered copper, brass and aluminum heat exchanger components and assemblies, has been acquired by Wellspring Capital Management LLC. Terms of the transaction were not disclosed.
Based in Montgomery, Alabama, ThermaSys was acquired by an affiliate of Sun Capital in February 2005 after the business had experienced production disruptions and tight liquidity. Upon closing, Sun Capital worked with management to divest non–core operations, adjust prices to reflect higher copper and brass costs, stabilize vendor relationships to enable the return of disruption–free production, improve financial controls and refocus production, and develop growth opportunities by serving as a key supplier to customers expanding into China. During the global downturn in late 2008 and 2009, ThermaSys increased margins through disciplined cost management and improvements in efficiency. In late 2010, ThermaSys acquired Covrad Holdings and Serck Heat Transfer, a pair of U.K.–based manufacturers of heat transfer products, which allowed the three companies to leverage complimentary products suites within new and existing end markets and geographies. As a result, ThermaSys has increased EBITDA by more than four times for the 12 months ended December 31, 2011, vs. the 12 months prior to acquisition.
“ThermaSys represents a true team effort in which Sun Capital leveraged its deep operating and transaction teams to carry out operational improvements and strategic add–on acquisitions. As a result, ThermaSys has been built into a global market leader,” said Marc Leder, co–CEO of Sun Capital Partners. “Wellspring Capital Management is purchasing a great business with a strong management team, and it will be an excellent partner that will further enhance ThermaSys’s position in the market.”
Sun Capital has significant prior experience in the industrial manufacturing sector through its affiliated portfolio companies, including, among others, The Farfield Company, one of the leading electrical and mechanical contractors in the Northeastern U.S.; and Walbro Engine Management, a manufacturer of air/fuel management and ignition systems for the global non–automotive engine market.
About Sun Capital Partners, Inc.
Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and other investments in companies that can benefit from its in–house operating professionals and experience. Sun Capital affiliates have invested in more than 290 companies worldwide with combined sales in excess of $45 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles, and New York, as well as affiliates in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen. For more information, please visit www.SunCapPart.com.
ThermaSys Corporation, headquartered in Montgomery, Alabama, is a leading supplier of highly engineered copper/brass and aluminum heat exchanger components and assemblies. The company operates six manufacturing plants, including three in Wisconsin, two in Alabama, and one in Dortmund, Germany. Its high unit volume products include seam welded aluminum tubing, seam welded brass tubing, and manifolds. Low / medium volume products consist of radiators, condensers, charge air coolers, oil coolers, shell / tube heat exchangers, and modular assemblies. ThermaSys has significant tier I market presence in power generation, construction / forestry equipment, hydraulic system cooling, oil / gas, and HVACR end–use market segments, primarily in North America. The Company plays a major tier II supplier role in OE and aftermarket auto and truck markets worldwide. For more information, visit www.thermasys.com.