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Wellspring Capital Management Acquires Crosman Corporation
from Pamlico Capital

April 18, 2011

EAST BLOOMFIELD, NY--Wellspring Capital Management LLC and Pamlico Capital today announced that Wellspring has acquired Crosman Corporation from Pamlico. Crosman's management team, led by CEO Ken D'Arcy, will retain a significant ownership position in the Company and continue to lead its growth in partnership with Wellspring. Financial terms of the transaction were not disclosed.

Founded in 1923 and based in East Bloomfield, New York, Crosman is the world’s leading designer, manufacturer and marketer of airguns, airsoft guns and related category consumables. The Company is one of the outdoor sportsman industry’s largest platforms with products marketed under several well-known proprietary and licensed names. Crosman serves over 500 retail and distribution accounts that sell its products through more than 10,000 unique locations worldwide. Crosman had been owned by Pamlico and the Company’s management since 2007. 

According to Mr. D’Arcy, the partnership with Wellspring will allow Crosman to build on its long history of success. “Crosman has become the preeminent brand in airgunning. The Company has a track record of producing and marketing high quality, innovative products and enjoys strong, longstanding customer relationships. Our new partners recognize Crosman’s potential and will provide us the resources to pursue a number of exciting new growth initiatives. We look forward to partnering with Wellspring and continuing the outstanding success enjoyed by the Company to date.”

William F. Dawson, Jr., a Managing Partner of Wellspring, said, “Crosman is a unique opportunity to invest in a platform with a strong and established brand and significant growth potential through internal initiatives and acquisition. The Company maintains longstanding relationships with premier sporting goods retailers and throughout its history its brands, innovative products and dependable service have fostered loyalty among retail partners and consumers. Ken D’Arcy and Crosman’s world-class management team have a proven track record and we are excited to collaborate with them to further enhance the value of the business.”

Alexander Carles, a Partner at Wellspring, said, “There are a number of growth avenues that the company is pursuing. On the organic growth front, Crosman has expanded its offerings in the hunting and shooting space with higher powered shooting products, including the Nitro Piston line and CenterPoint optics. On the strategic side, the new owners have their sights set on several potential targets including both competitors and companies in adjacent sporting goods categories.”

Pamlico Partner Art Roselle said, “During our partnership with Crosman, the Company’s management team did an outstanding job of driving organic growth and enhancing the Company’s position as the global leader in the airgun and airsoft categories. The entire Crosman management team, led by Ken D’Arcy, Steve Upham, Bob Beckwith, Bob Hampton and Dan Schultz, generated a tremendous outcome for us and our limited partners over a highly-challenging period for the overall economy and, in particular, the consumer industry. We wish them continued success with Wellspring.”

Crosman and Pamlico were advised by Robert W. Baird & Co. (financial advisor) and Alston & Bird LLP (legal advisor). Wellspring was advised by Paul, Weiss, Rifkind, Wharton & Garrison LLP (legal advisor). 

About Crosman Corporation

Founded in 1923 and based in East Bloomfield, NY, Crosman Corporation is the world’s leading designer, manufacturer and marketer of airguns, airsoft guns and related category consumables. It also offers high-quality precision optics. The Company markets its products under several proprietary (Crosman, Benjamin, Sheridan, Game Face, Copperhead and CenterPoint) and licensed (Remington, Bushmaster and Marlin) brand names. For additional information, please visit www.crosman.com.

About Wellspring Capital Management

Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. The firm’s objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources. For additional information, please visit www.wellspringcapital.com.

About Pamlico Capital

Pamlico Capital, formerly known as Wachovia Capital Partners, was founded in 1988 and has invested in excess of $3.5 billion in over 200 middle market companies since its inception. Pamlico Capital seeks growth equity and buyout investments of up to $100 million alongside proven management teams in its target industries, which include business & technology services, communications, and healthcare. The firm, based in Charlotte, NC, currently manages over $2 billion in assets. Please refer to www.pamlicocapital.com for additional information.

Media Contacts:

For Wellspring Capital Management

Kekst and Company
Mark Semer / Micheline Tang
212.521.4800
micheline-tang@kekst.com

For Pamlico

BackBay Communications
Jen Dowd
(212) 209-3844
Jen.Dowd@backbaycommunications.com