Wellspring Capital Management LLC, a New York-based private equity investment firm and majority shareholder of The Hockey Company since 1997, has reportedly taken a majority stake in Edwin Watts Golf. Terms of the deal were not disclosed.

The 41-store retail operation is located primarily in the Southeast U.S. and the capital infusion is expected to provide for more rapid expansion and a potential IPO. The Florida-based company also has seven franchise stores in Alabama, Florida and Massachusetts, and international mail order and Internet businesses.

Edwin and Ronnie Watts, the brothers who founded Edwin Watts Golf in 1968 and remain today as co-CEO’s of the company, will reportedly continue to manage the company. The balance of the company’s management team and associates are expected to remain in place. Wellspring looks for investments with a strong team in place and believe that “highly qualified and motivated senior management is vital to the successful implementation of a company’s business strategy”.

This is the fifth transaction for Wellspring Capital Partners III, LP, which held its final close in April at $675 million. Typical acquisition targets for the firm have revenues of at least $50 million and total acquisition or transaction values of more than $75 million.


>>> Wellspring said they see a big upside in the golf retail business. They obviously haven’t been reading the trades lately…