Wellspring sells ventilation services group

Wellspring Capital Management has agreed to sell Residential Services Group for a reported $150m and has also agreed to buy International Mill Service.

New York-based Wellspring Capital Management has agreed to sell Residential Services Group, a provider of heating, ventilation, air conditioning and plumbing services, to Centrica, the UK’s largest natural gas distributor.

Terms of the deal were not disclosed, though the purchase of the Dayton, Ohio company has been reported as being worth $150 million (€121 million).

The same day, Wellspring also announced the purchase of International Mill Service from a shareholder group led by investment advisor GSC Partners for an undisclosed sum. International Mill Service provides outsourced industrial services primarily to the steel industry.

Wellspring currently manages more than $1 billion in equity and is currently investing from its $675 million Wellspring Capital partners III, which closed in April of last year. In May, the firm agreed to sell ACMI Holdings, a producer and operator of amusement vending machines, to Coinstar for $235 million. The sale represents a nearly six times return on equity, according to Wellspring. This past April, the firm also agreed to sell its stake in The Hockey Co. to Reebok in a deal valued at approximately $330 million.