Wedoany.com Report on Mar 13th, A newly formed subsidiary of New York-based middle-market investment firm KPS Capital Partners LP plans to complete the acquisition of Wells Companies Inc., headquartered in Albany, Minnesota, by the end of the first quarter, with the specific transaction amount undisclosed. Wells is a well-known player in the architectural and structural precast concrete sector in North America, and this acquisition will strengthen KPS Capital's presence in the precast concrete market. Previously, KPS Capital acquired CRH Americas' Oldcastle Building Envelope business for over $3 billion in 2022.
The Wells Companies transaction includes 13 production facilities across the Southeast, South Central, Midwest, and Rocky Mountain regions, encompassing its original operations as well as factories integrated in recent years from Gate Precast and Spancrete. KPS Capital highlighted the manufacturer's complete capabilities, from design assistance to on-site installation, which will help enhance the competitiveness of precast concrete solutions.
Ryan Harrison, Co-Head of KPS Middle Market Investments, stated: "Wells' manufacturing expertise and commitment to quality, combined with our strategic, operational, and financial resources, provide an ideal platform for future growth. We look forward to collaborating with CEO Dan Juntunen and the Wells team to actively expand the business through organic growth and strategic acquisitions." Wells CEO Dan Juntunen added: "KPS has a strong track record in manufacturing excellence and experience with significant building products, making them the ideal partner for Wells as we enter the next phase of growth. We look forward to working closely with KPS and our talented team to expand our industry leadership and continue delivering high-quality products that bring significant value to our customers."
Regarding legal and financial advisors, Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KPS, while Piper Sandler and Taft, Stettinius and Hollister LLP handled Wells' financial and legal matters. This acquisition is expected to drive the development of the precast concrete industry, aligning with the growing demand for precast solutions in construction applications.
