Stout Advises on Sale of Vestal Manufacturing Enterprises

December 07, 2020

Stout announced that Vestal Manufacturing Enterprises, Inc. (“Vestal”), a portfolio company of Spell Capital Partners (“Spell”), has been acquired by DDG, Inc. Stout served as exclusive financial advisor to Spell and Vestal in connection with this transaction.

Vestal, founded in 1946 and headquartered in Sweetwater, TN, is a longstanding, premier manufacturer of high-quality “Made in USA” municipal infrastructure and OEM iron castings, metal building products, and fireplace accessories. Vestal’s vast iron casting product line includes water meter covers and sewer cleanouts serving municipal water, wastewater, and sewer infrastructure alongside functional components for various OEM applications. The company’s building products line primarily serves residential housing markets and home improvement projects, and includes items such as wall ties, anchor bolts, angles, lintels, vents, and fireplace accessories.

Spell Capital is an established manager of private equity and mezzanine capital based in Minneapolis. Founded in 1988, Spell Capital has over 30 years of successful industry experience, manages over $1 billion of capital (AUM), and has 95 active investments.

James Rikkers, Senior Managing Director at Spell, said, “During Spell’s ownership, Vestal has grown sales revenue, increased profitability, and expanded the company's product offering. We feel that Vestal is well-positioned to continue its success and growth with DDG.”

DDG, a family office based in Northbrook, IL, has been actively seeking to expand its holdings in the manufacturing space. DDG's President Dru Goodman and Executive Vice President Grady Vogt said, “Stout is the only investment bank that delivered a desirable turnkey asset in the last 24 months.”

Stout Managing Director David Evatz, who led the transaction, added, “Vestal manufactures a diverse line of high- quality products and has a strong reputation in the industry. It was a pleasure working with Spell and Vestal on this transaction.” Stout’s Michael Brocious, Brian Leichus, and Aaron Perez assisted in executing the deal.

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