Wellspring Capital Management has sold its portfolio company Cleaver-Brooks, a provider of boiler room solutions, to Harbour Group.
Terms of the transaction have not been disclosed.
Since acquiring Cleaver-Brooks in June 2008, Wellspring and management worked closely to leverage the company’s position and optimise the value of its integrated product line. In 2011, Cleaver-Brooks acquired Cheminee Lining, a Montreal-based specialty designer and manufacturer of stack systems.
William F Dawson, Jr (pictured), a managing partner of Wellspring, says: "Under our ownership, Cleaver-Brooks capitalised on attractive industry dynamics to significantly grow both organically and through strategic acquisition. In particular, we worked with the company’s management team to expand product lines and to cater to the growing energy-efficiency and low-emission needs of the markets, as well as to significantly develop the high-margin aftermarket segment. We thank Welch Goggins and his team for their outstanding efforts to enhance the value of Cleaver-Brooks for its customers and for our investors."
P Welch Goggins, Jr, president and chief executive officer of Cleaver-Brooks, says: “We were fortunate to have had Wellspring as a partner during these past five years. Wellspring’s strategic and financial support during an extremely turbulent period for the economy provided us with the insight and stability we needed to meet our business objectives. Thanks to Wellspring, we are well positioned to continue our expansion into new and growing markets."
Robert W Baird & Co and RBC Capital Markets served as financial advisers to Wellspring and Cleaver-Brooks with respect to the transaction, and Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel.
