J.F. Lehman & Company Expands Its Portfolio with Wellman Dynamics Acquisition

J.F. Lehman & Company (JFLCO), a prominent alternative asset manager with a concentration on sectors such as aerospace, defense, and maritime, has announced a significant milestone in its growth trajectory. The firm has acquired a majority stake in Wellman Dynamics, a Creston, Iowa-based company renowned for its specialized sand casting capabilities in magnesium and aluminum for aerospace and defense applications. With this strategic move, JFLCO aims to capitalize on Wellman's legacy of engineering expertise and expand its manufacturing capabilities in high-demand sectors.

The acquisition represents an essential partnership where JFLCO will work alongside Wellman’s current stakeholder, TRM Equity, which will also maintain a meaningful ownership position in the business. This collaboration is aimed at enhancing Wellman’s growth and operational efficiency as it embarks on its next chapter. The leadership at JFLCO expressed excitement about leveraging Wellman’s established reputation as a critical supplier, having been in the industry for over a century.

Wellman Dynamics: A Key Player in Aerospace and Defense

Wellman Dynamics stands out in the market for its ability to produce large-scale and highly complex castings, with capabilities to handle parts weighing up to 4,000 pounds and intricate designs that require over 100 cores. Such products are vital for numerous applications in aerospace, particularly in rotary wing and fixed-wing aircraft, as well as in aeroengines. The company has built itself as a trusted ally to major Original Equipment Manufacturers (OEMs), delivering high performance and reliability, which is critical in the aerospace and defense industries.

Alex Harman, Managing Partner at JFLCO, remarked on the acquisition, noting, "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." This statement underscores the essential role Wellman plays in sustaining the aerospace supply chain's demands, backed by rigorous performance standards.

Optimistic Outlook for Growth

JFLCO’s Managing Director, Ben Hatcher, emphasized the uniqueness of Wellman’s expertise within the global aerospace supply chain, suggesting that the partnership could unlock new dimensions for development while expanding existing capacities. The targeted outcomes include serving present clients more effectively and entering new market segments with innovative products and services.

Ralph Clendenin, Chief Operating Officer of Wellman, expressed optimism about this new partnership, highlighting JFLCO’s sector knowledge and operational aptitude as critical factors that would empower Wellman’s skilled workforce. Clenden believes that this partnership will not only fortify the business but will also ensure consistent delivery of mission-critical solutions to their customers.

The financial framework for this acquisition was orchestrated by Netrex Capital Markets, with backing from a syndicate led by Eldridge Capital Management and further supported by Guggenheim Investments and PGIM. Legal representation for JFLCO was provided by Blank Rome and Jones Day, while Wellman received counsel from Jefferies, which served as their exclusive financial advisor, alongside Miller Johnson Snell & Cummiskey for legal matters.

About J.F. Lehman & Company

Founded in 1992, J.F. Lehman & Company has carved out a niche in managing investments specifically aimed at the aerospace, defense, government, environmental, maritime, and infrastructure sectors. With over $8 billion in assets under management, the firm operates from its offices located in New York and Washington, D.C., continually seeking opportunities that align with its focus on strategic and sustainable industrial growth.

For more information, you can visit J.F. Lehman & Company’s website.