$28M Pharmaceutical Facility Sale Leaseback for Olympus Partners

Ascension Advisory advised Olympus Partners on a $28 million sale leaseback of a pharmaceutical manufacturing facility in Sacramento, California. The approximately 93,000 square foot property was acquired as part of a strategic add-on transaction for one of its pharmaceutical-focused portfolio companies.

The facility is purpose-built for regulated pharmaceutical production and includes significant technical infrastructure, specialized utility systems, and compliance-driven buildouts tailored to customer programs.

Client Objective

As part of the add-on acquisition, Olympus Partners sought to monetize the acquired real estate to help finance the transaction. The objective was to unlock embedded real estate value while maintaining full operational control of a highly specialized GMP manufacturing environment.

Given the technical complexity of the asset and its importance to ongoing production and customer relationships, the structure needed to preserve operational continuity, regulatory stability, and long-term site control.

Solution

Ascension structured and executed a tailored sale leaseback that converted the acquired real estate into immediate acquisition capital.

The asset was positioned to a targeted investor universe with experience underwriting pharmaceutical and specialized industrial facilities. The marketing process emphasized the durability of pharmaceutical demand, the embedded value of the facility’s technical buildout, regulatory barriers that create operational stickiness, and the asset’s strategic relevance within the broader platform strategy.

Ascension managed investor outreach, diligence coordination, and transaction structuring to ensure execution certainty and alignment with Olympus Partners’ financing objectives.

Outcome

The $28 million transaction generated capital that directly supported financing of the add-on acquisition, enhancing overall transaction efficiency and optimizing the capital structure.

This engagement demonstrates how sale leasebacks can be strategically integrated into sponsor-led pharmaceutical M&A activity. Highly specialized, capital-intensive manufacturing facilities often represent significant embedded value that can be monetized to support growth, while preserving uninterrupted use of regulated production infrastructure.