NEW YORK – Wellspring Capital Management LLC (“Wellspring”) today announced that an affiliate has acquired API Heat Transfer Inc. (“API Heat Transfer”), one of the largest full-service producers of industrial heat exchangers and heat transfer systems, from Industrial Growth Partners. Financial terms of the transaction were not disclosed.

In January 2012, the same Wellspring affiliate acquired ThermaSys Corporation (“ThermaSys”), a leading manufacturer of a wide range of heat exchangers and heat exchange equipment. Initially ThermaSys and API Heat Transfer will operate independently, but will collaborate to serve their markets with a broader product offering, enhanced product technology and customer service, and greater global reach.

Founded in 1947 and headquartered in Buffalo, NY, API Heat Transfer is a global leader in the design and manufacture of a wide range of heat transfer technologies that service virtually every industrial market including compressors, food and beverage, dairy, air separation, chemical processing, mobile vehicles, power generation, pharmaceuticals, HVAC, and a wide variety of general industrial applications. The company markets a family of brands, including Airtech, Basco, and Schmidt, which are highly regarded in the industry for their innovative design, exceptional performance and reliable service. API Heat Transfer operates from five modern manufacturing facilities located in the United States, Germany and China, and provides local sales and service to customers through its global sales network. The company employs more than 950 people.

Joe Cordosi, Chief Executive Officer of API Heat Transfer, said, “Wellspring’s investment in API Heat Transfer is an exciting development for our business and our customers. Through our new partnership with ThermaSys, we will serve the market with one of the world’s leading offerings of specialty heat exchanger products. Our management team looks forward to collaborating with Paul Schmitz and the ThermaSys management team to strengthen each of our businesses and further enhance our product and service offerings.”

William F. Dawson, Jr., Managing Partner of Wellspring, said, “The acquisition of API Heat Transfer is an important addition to the highly engineered heat exchanger platform we are building. Joe Cordosi and his team have done an outstanding job building the market leadership of API Heat Transfer and its brands, positioning the business for continued growth and developing a world-class capability. We are confident that the partnership between API Heat Transfer and ThermaSys will enhance the value of the two businesses for the benefit of our customers.”

Wellspring has significant experience investing in industrial businesses. In 2008 the firm acquired Cleaver-Brooks, Inc., one of the world’s largest manufacturers of fully integrated boiler and burner systems, which as a heat technology-related business serves end markets similar to ThermaSys. Wellspring has also invested in Tube City IMS, a leading provider of outsourced services to the global steel industry, and JW Aluminum, a leading producer of specialty flat-rolled aluminum products.

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Wellspring with respect to the transaction, and Alvarez and Marsal Transaction Advisory Group provided finance, accounting and tax advice.

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.

Media Contacts:

Mark Semer / Micheline Tang