Spell Capital Partners

Spell Capital Partners
Private Equity Firm
Industry Financial Services and Asset Management
Founded 1988
Founder William Spell
Headquarters Minneapolis, Minnesota
Total assets $467 million
Website spellcapital.com

Spell Capital Partners is based in Minnesota, and specialize in the management of private equity and mezzanine capital. The current President William Spell founded the company in 1988.[1]

Since its foundation, the firm raised a total of $300 million in capital and in 2013 had successfully completed over 80 acquisition transactions. Currently, Spell Capital is investing from Spell Capital Partners Fund V and Spell Capital Mezzanine Partners.[2]

Spell Capital is split into two divisions, Spell Capital Private Equity and Spell Capital Mezzanine. Private Equity focuses on acquiring controlling interests in industrial manufacturing companies, while Spell Capital Mezzanine provides subordinated debt and non-control equity to businesses in a variety of industries.[3]

Background

Spell Capital Partners LLC is a private equity firm specializing in subordinated debt, mezzanine debt, buyouts, growth capital, acquisitions, middle market investments, add-on acquisitions, and management buy-outs.

Spell Capital Partners differentiate themselves from typical private equity funds, as the company’s partners’ personal investments account for 20-40% of each fund. The firm has 9 Managing Directors consisting of Bruce A. Richard, Dobson West, Stephan P. Jones, James W. Rikkers, Andrea Nelson, Paul Meyering, Mark McDonald, Stacy Harmsen and Andrew Leonard. Randy Ahlm and Kip Colwell are the firm’s Operating Partners.

The firm typically invests in industrial manufacturing and distribution businesses. It seeks to invest in companies headquartered in upper-Midwestern states of Minnesota, Iowa, Wisconsin, North Dakota, South Dakota, Indiana, Illinois, Indiana and Nebraska.

The firm primarily invests between $2 million and $20 million in companies generating minimum revenues of $5 million, enterprise value between $10 million and $100 million and having an EBITDA between $1.5 million and $15 million.[1]

Spell Capital Partners is the controlling equity partner in the Capital Equipment Group. The consortium consists of Spell Capital Partners, EPCO LLC, Pacific Press Technologies, Kason Corporation and Brown Machine LLC.[4] Spell Capital is also the controlling equity partner in 6 other companies, Premier Precision Group, Norshield Security Products, Filter Minder, Falls Fabricating, American Card Services and Breen Color Concentrates.

History

Spell founded the company in 1988, drawing upon his prior experience as Vice President and Director of Corporate Finance at a Midwest-based investment-banking firm.[5]

In 2006, Spell capital acquired Breen Color, based in Lambertville, New Jersey. The firm had operated in the Plastics industry since 1976. No purchase price was disclosed, but an industry source valued the Breen transaction at less than $10 million.[6]

In 2007, the company had a busy year, acquiring 12 companies and selling 3. The largest during that year was Copperfield in Bremen, IN, which sold for $213 million.[7] During the same year, the company also invested in Falls Fabricating.[8]

In 2009, Spell Capital bought a controlling share in Norshield Corp.[9] During the same year, Premier Precision, backed by Spell Capital, bought the Phoenix firm Aimco Precision Inc.[10]

During January 2012, Spell Capital launched its first Mezzanine fund with a goal of approximately $100 million in total capital. The fund closed in spring 2013, with subscribed at over $130 million. This fund provides subordinated debt and non-control equity to businesses in a variety of industries across the United States, targeting companies with $2–15 million of EBITDA.[11]

In 2013, the company has numerous investments in industrial organizations including Filter Minder.[12] In September 2013, the company sold precision injection molder Spectrum Plastics to Pexco LLC. The company was originally owned by Spectrum Plastics Group, of which Spell Capital still has a controlling interest in.

Recognition

Spell Capital Partners has received three nominations for Deal of the Year from Buyouts Magazine. In April 2013, Spell Capital’s Arctic Fox transaction was nominated for Turnaround Deal of the Year and LAI International was nominated for Small Market Deal of the Year. In 2007, Copperfield, Inc. was a finalist for the Middle Market Deal of the Year.

References

  1. 1 2 "Spell Capital Partners". InsideView. Retrieved 7 October 2013.
  2. ↑ "Spell Capital Partners raises $32M". Biz Journals. Retrieved 7 October 2013.
  3. ↑ "Official Website". Spell Capital. Retrieved 7 October 2013.
  4. ↑ "About the Capital Equipment Group". Capital Equipment Group. Retrieved 7 October 2013.
  5. ↑ "Company Overview of Peerless Industrial Group, Inc.". BusinessWeek. Retrieved 7 October 2013.
  6. ↑ "Spell Capital acquires Breen". Plastic News. Retrieved 7 October 2013.
  7. ↑ "Spell Capital had strong deal flow in '07 with 15 transactions". Biz Journals. Retrieved 7 October 2013.
  8. ↑ "About FF". Falls Fabricating. Retrieved 7 October 2013.
  9. ↑ "Norshield Holdings acquires Norshield Corp.". Glass Magazine. Retrieved 7 October 2013.
  10. ↑ "Premier Precision, backed by Spell Capital, buys Phoenix firm". Biz Journals. Retrieved 7 October 2013.
  11. ↑ "Spell Capital Partners Launches New Fund". PE Hub. Retrieved 7 October 2013.
  12. ↑ "Spell Capital Invests in Filter Minder". Filter Minder. Retrieved 7 October 2013.
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