3-Unit $83M Private Equity Backed Health Snack Portfolio

Background:

The Ascension Team represented a private equity backed leading manufacturer and marketer of protein products, snacks, and appetizers to channels including strategic co-packing, private label, food service and branded products. The portfolio company had three freezer/cooler food production facilities spanning over 415,000 square feet and 60+ acres of land in Tennessee and Virginia.

Client Objective:

The client was interested in structuring a sale leaseback in order to generate capital to pay down debt and support the growth of the business through capital investment in equipment and operational improvements. Compared to traditional debt financing, sale leasebacks offers more flexible capital, at a lower cost, and without financial covenants.  

Solution:

Ascension was hired to arrange both sale leaseback and construction financing of the company’s mission-critical, refrigerated production facilities in Virginia and Tennessee. Our private equity client desired a quick closing to meet the company’s timing goals, and we were able to meet the client's request by running a competitive, expedited marketing process, bringing in offers from a variety of investors including public REITs, family offices, private funds, and asset managers.

Ultimately, Ascension successfully closed the transaction within the required timeframe, with a $54 million sale leaseback and a commitment for $29 million in construction financing to fund a future facility expansion.