NEW YORK, Oct. 8, 2020 /PRNewswire/ — Wellspring Capital Management LLC (“Wellspring”), a New York-based private equity firm, today announced that it has partnered with management to acquire Cadence Petroleum Group (“Cadence”), a leading distributor of lubricant and fuel products across the eastern and central United States. Financial terms of the transaction were not disclosed.
Cadence Petroleum Group was formed in 2018 through the combination of industry leading companies. With the Wellspring partnership, Cadence will focus on accelerating growth through increased acquisition activity, in addition to organic growth initiatives.
Alex Carles, a Managing Partner at Wellspring, said, “The acquisition of Cadence is an exciting opportunity to build on Wellspring’s successful track record in the petroleum products distribution sector which dates back to 2005. We strongly believe that the value of Cadence rests upon the strength of its employees and strategic suppliers. We are thrilled that Cadence management is investing heavily alongside our investment out of the $1.45 billion Wellspring Capital Partners VI.”
Naishadh Lalwani, a Principal at Wellspring, commented, “We look forward to working with the Cadence team to accelerate the Company’s growth trajectory and acquisition strategy. We strongly believe that Cadence is uniquely positioned in the lubricant and fuel markets and are excited to help the Company achieve its long-term goals.”
Tyson Pugh, SVP of Business Development at Cadence, added, “We are very pleased that Wellspring has invested in Cadence given the firm’s history of building successful businesses in the distribution sector, people-oriented culture, and focus on growth. We are extremely proud of what our team has accomplished, and we look forward to working with Wellspring on this exciting new chapter for our organization.”
McDermott Will & Emery LLP served as legal counsel to Wellspring and Cerberus Business Finance, LLC provided a one-stop financing solution for the transaction. Stephens served as financial advisor and Koley Jessen served as legal counsel to Cadence with respect to the transaction.
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 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 partner, providing management teams with top-line support, M&A experience, financial expertise and access to resources. For additional information, please visit www.wellspringcapital.com.
About Cadence Petroleum Group
Cadence Petroleum is one of the largest distributors of lubricants, fuel, antifreeze, diesel exhaust fluid, and other ancillary products for the eastern and central United States. For additional information, please visit www.cadencepetroleum.com.
Cadence Petroleum Group
Tyson Pugh – SVP – Business Development
Cadence Petroleum Group Logo
SOURCE Cadence Petroleum Group