The Bottom Line: NewSpring’s Investment in Prospect Mold
August 20, 2020
NewSpring, a family of private equity strategies, announced today that NewSpring Mezzanine, the Firm’s dedicated mezzanine strategy, has invested in Prospect Mold in partnership with P4G Capital.
Prospect Mold is a leading manufacturer of complex parts and custom materials for the aerospace and defense (A&D) and automotive industries
Prospect Mold is an industry-leading manufacturer of complex parts and custom tooling, molds, and dies used in the creation and maintenance of aircraft for the A&D and auto industries. The Company leverages its high-level intellectual capital and highly skilled craftsmen to support the construction and maintenance of these complex machines with quality and consistency. This combination of niche expertise and a reputation for high-quality work has led to many long-standing relationships with some of the largest names in the A&D and auto industries.
The Company has a competitive advantage and favorable market position in the growing aerospace defense industry
The production of F-35 aircraft has increased three-fold since 2016 and is expected to grow even further by 2022. Considering Prospect Mold’s experience with this specific type of aircraft and its existing relationships with F-35 producers in the market, the Company is well positioned to capitalize on this trend in the next few years. Additionally, continued growth in the U.S. National Defense budget, specifically within tooling and composites, creates a massive opportunity for manufacturers like Prospect Mold to grow.
"For over 75 years, Prospect Mold has remained dedicated to service, relationships, and producing positive outcomes for clients in the A&D and auto industries. These core areas will remain a focus for our business as we continue to innovate, bring on new highly-skilled technicians, and expand into new industries. We’re thrilled to partner with NewSpring as we continue to grow."
NewSpring Mezzanine’s deal structure flexibility allows for a debt and equity investment to support growth
NewSpring Mezzanine has invested mezzanine debt and preferred equity to support the acquisition of Prospect Mold in partnership with P4G Capital. Leveraging NewSpring’s operating expertise and deep network of value creation advisors, Prospect Mold plans to use the proceeds to expand the reach of its services to new clients and hire additional highly-skilled employees to support its growth.
Prospect Mold’s experienced leadership team has demonstrated a dedication to innovation and creating a competitive edge
Prospect Mold has excelled under the leadership of President Brandon Wenzlik in recent years thanks in large part to his commitment to staying on the cutting edge of new technologies and manufacturing capabilities. Wenzlik managed the Company’s recent transition to the aerospace and defense industry, a sector that has become a primary growth market for Prospect Mold.
"Under the strategic leadership of Brandon and the rest of the Prospect Mold team, the Company has positioned itself well to adapt to the evolving needs of the industries it serves and expand into new markets. Prospect Mold's highly-skilled workforce is a proven differentiator and competitive advantage, and we’re excited to work with the entire team to continue building on the Company’s 75 years of success."