J.F. Lehman & Company (JFLCO), an alternative asset manager focused on aerospace, defense, government, maritime, environmental and infrastructure sectors, said it has acquired a majority stake in Wellman Dynamics, a Creston, Iowa-based manufacturer of large-scale magnesium and aluminum sand castings used in aerospace and defense applications.
The investment was made through an affiliate of JFL Equity Investor VI, L.P. Financial terms were not disclosed. JFLCO said it will partner with Wellman’s current owner, TRM Equity, which will retain a “meaningful” minority ownership position as the company moves into what the firms described as its next phase of growth.
Wellman is known for producing high-complexity castings that support critical rotary wing, fixed-wing, aeroengine and other aerospace and defense programs for original equipment manufacturers that require high performance and reliability. The company said its capabilities include producing parts weighing up to 4,000 pounds and utilizing more than 100 cores—attributes that can be important for components that demand precise engineering and repeatable production processes.
JFLCO executives framed the transaction as a platform investment in a specialized segment of the aerospace and defense supply chain, where fewer suppliers have the technical depth and production know-how to work at scale with magnesium and advanced aluminum alloys. Managing Partner Alex Harman said the firm views Wellman as a long-established supplier with differentiated engineering and manufacturing expertise, and that the new partnership is intended to build on that foundation.
Support: Financing for the acquisition was arranged by Netrex Capital Markets and provided by a lender group led by Eldridge Capital Management and co-led by Guggenheim Investments and PGIM. And advisors on the deal included Blank Rome and Jones Day as legal counsel to JFLCO. Jefferies served as exclusive financial advisor to Wellman, while Miller Johnson Snell & Cummiskey provided legal counsel to Wellman and TRM Equity.
KEY QUOTES:
“Since its founding more than a century ago, Wellman has established itself as a critical supplier to many of the most prolific aerospace and defense programs due to its differentiated engineering and production expertise. We are excited to partner with TRM and Wellman’s leadership team to build upon the Company’s strong foundation as a leading provider of highly complex magnesium and aluminum sand castings.”
Alex Harman, Managing Partner, J.F. Lehman & Company
“Wellman is a scarce asset within the global aerospace and defense supply chain given its unique expertise in magnesium and aluminum alloys. We look forward to applying our operational and sector-specific commercial expertise to best support the Company’s existing customers, expand its manufacturing capacity, and pursue new growth programs.”
Ben Hatcher, Managing Director, J.F. Lehman & Company
“We are thrilled to partner with JFLCO as we enter the next chapter of Wellman’s growth. JFLCO’s deep sector knowledge and operational expertise makes them an ideal partner for our business. This partnership will empower our highly-skilled employees to build on Wellman’s strong foundation and continue delivering mission-critical solutions to our customers.”
Ralph Clendenin, Chief Operating Officer, Wellman Dynamics
