Co-Advisor
Emerald Textiles
Debt Capital Markets
Senior Secured Credit Facilities
&
Has Been Acquired By
Transaction Details
- On August 16, 2021, Pacific Avenue Capital Partners, LLC (“Pacific Avenue”) announced that its portfolio company Encore Textile Services LLC (d/b/a Emerald Textiles (“Emerald” or the “Company”) completed a refinancing of its existing credit facilities with funds managed by the Credit Group of Ares Management Corporation (“Ares”) and Wells Fargo Capital Finance (“Wells Fargo”).
- Ares provided a senior secured Unitranche facility to the Company and Wells Fargo provided an ABL Revolver.
- As part of the transaction, Pacific Avenue also raised more than $200 million of equity capital to purchase Emerald Textiles from existing limited partner investors through a continuation vehicle, and support the Company’s next phase of growth.
- The transaction and Pacific Avenue's continued involvement position Emerald to take advantage of significant market opportunities, while also providing liquidity for the original limited partners.
- On August 16, 2021, Pacific Avenue Capital Partners, LLC (“Pacific Avenue”), announced that it raised more than $200 million of equity capital to purchase Encore Textile Services LLC (d/b/a Emerald Textiles (“Emerald” or the “Company”) from existing limited partner investors through a continuation vehicle, and support the Company’s next phase of growth.
- The transaction also included a refinancing of the Company's existing credit facilities with funds managed by the Credit Group of Ares Management Corporation providing a Unitranche solution and Wells Fargo Capital Finance providing an ABL revolver.
- The continuation vehicle was funded by a group of leading institutional investors including Glendower Capital, funds and accounts managed by BlackRock Private Equity Partners, DWS Private Equity, Allstate Investments, CH Investment Partners and other blue-chip investors.
- The Emerald management team and Pacific Avenue also made a significant investment as part of the transaction.
- The transaction and Pacific Avenue's continued involvement position Emerald to take advantage of significant market opportunities, while also providing liquidity for the original limited partners.
About the company
Emerald Textiles
Emerald is the leading provider of outsourced linen management services and specialty products to hospitals, clinics, and other healthcare facilities in the Western Unites States. The Company provides a full suite of products encompassing traditional linens and add-ons, and is committed to providing the best value-proposition to customers through the highest quality and service. Today, Emerald operates six modern processing facilities and two distribution centers across California, Nevada, and Utah, serving over 750 customer sites.
Pacific Avenue
Pacific Avenue Capital Partners, founded by Chris Sznewajs in 2017, is a Los Angeles-based private investment firm focused on corporate divestitures and other complex situations in the middle market. Pacific Avenue has extensive M&A and operations experience allowing the firm to navigate complex transactions and unlock value through operational improvement, capital investment, and accelerated growth. The Pacific Avenue portfolio exceeds more than $800 million in revenue. Pacific Avenue takes a collaborative approach in partnering with strong management teams to drive strategic change and assist businesses in reaching their full potential. For more information, please visit www.pacificavenuecapital.com.
Sources: Company filings and press release
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