AEA Private Debt Leads Mezzanine Financing to Support LFM Capital-Backed Weller Metalworks' Acquisition of DROP Sprockets

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Sep 26, 2024, 08:00 ET

NEW YORK, Sept. 26, 2024 /PRNewswire/ -- AEA Investors' Private Debt group ("AEA Private Debt"), a leading provider of private credit to the middle market, today announced that it served as the Sole Provider of mezzanine notes and an equity co-investment in support of LFM Capital-backed Weller Metalworks' ("Weller" or "the Platform") acquisition of DROP Sprockets, Inc. ("DROP").

Established by LFM Capital ("LFM") in 2023, Weller is a best-in-class metal fabrication, stamping, and precision machining company that provides components to customers around the world. The Platform offers complete lifecycle solutions to customers, from the early stages through production and end-of-life with a focus on integrated digital technologies. The addition of DROP represents Weller's third add-on acquisition, having previously welcomed Muthig Industries and Laser Precision to the Platform last year.

Headquartered in Nelson, British Columbia, DROP is a leading manufacturer of high-quality, customizable made-to-order sprockets used in all applications. DROP provides complementary resources, systems, and expertise, enabling Weller to offer a broader solution set for customers.

This transaction marks AEA Private Debt's second partnership with the LFM team this year, having previously supported the senior debt financing of another LFM portfolio company.

Timothy Wong, Principal at AEA Private Debt, said, "We are pleased to partner with the LFM team again and expand on our existing relationship. Weller Metalworks is a leader in its market and true solutions provider to its customers, and we look forward to being a part of the Platform's next stage of growth."

"The addition of DROP Sprockets to Weller enhances our manufacturing capabilities and product offering to better serve customers that are looking for high-quality components delivered when they need them," said Russ Aiken, Vice President at LFM Capital. "We appreciate AEA Private Debt's ability to provide a quick, flexible financing solution in support of this transaction, enabling us to position the Platform for success, and we look forward to our continued partnership with the AEA Private Debt team."

About AEA Private Debt
AEA Private Debt makes senior debt, unitranche, junior debt, and equity co-investments in leading middle market companies across a broad range of industries and end markets. AEA Private Debt's team of experienced professionals partners with private equity firms, family offices, and entrepreneur-backed companies to provide financing solutions in support of leveraged buyouts, recapitalizations, add-on acquisitions, refinancings, and other similar capital needs. Since inception in 2005, AEA Private Debt has invested over $8 billion across more than 400 transactions.

AEA Private Debt is part of AEA Investors ("AEA"), which was founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA has an extraordinary global network built over many years which includes leading industrial families, business executives, and leaders. Today, AEA's over 120 investment professionals operate globally with offices in New York, Stamford, San Francisco, London, Munich, and Shanghai. The firm manages funds that have approximately $19 billion of invested and committed capital including the leveraged buyouts of middle market and small business companies, growth capital, and private debt investments. For more information, visit www.aeainvestors.com.

About LFM Capital
LFM Capital is a private equity firm based in Nashville, Tennessee. The LFM team is led by experienced and successful Fortune 50 global executive managers and private equity professionals who bring decades of management leadership, operating best practices, exceptional professional recruiting networks, and a successful track record in lower middle market investing. LFM targets lead or control investments in U.S.-based lower middle market manufacturing and industrial services companies with at least $3 million of EBITDA and enterprise values ranging from $15 million to $125 million. The firm's mission is to partner with portfolio company management to develop and build world-class operations through a combination of manufacturing and operations excellence and targeted growth and expansion strategies. For additional information, please visit www.lfmcapital.com.

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SOURCE AEA Investors