Ascension Advisory facilitated a $41.4 million sale leaseback of a 255,000-square-foot food distribution facility in Philadelphia, Pennsylvania, on behalf of their private equity client as part of their acquisition of a leading protein distributor. The tenant is a market leader and operates across the Northeast and Mid-Atlantic regions. The sale leaseback proceeds were used to help fund the M&A deal, unlocking significant capital to support the acquisition while ensuring long-term operational continuity for the business.
Client Objective:
The client, a premier private equity firm, was in the process of acquiring a well-established protein distributor and they sought to monetize its mission-critical real estate asset to generate accretive financing for the M&A transaction. With tight deadlines required to meet the M&A timeframe, the private equity firm needed a seamless transaction that maximized value, met the company's operational requirements, and adhered to an expedited timeline.
Solution:
Ascension executed a targeted and expedited off-market sale leaseback process, leveraging its close investor network to identify qualified buyers for the opportunity. The team received multiple competitive bids within days of launching the process and ultimately selected an experienced sale leaseback investor who demonstrated a deep understanding of the food distribution industry. The chosen buyer, offering an all-cash deal, collaborated closely with Ascension and the private equity group to navigate the unique complexities of a simultaneous closing. And recognizing the strategic importance of the facility’s size, functionality, and location, the buyer structured a favorable long-term lease for the business commencing at closing, ensuring the distributor’s uninterrupted operations.
Conclusion:
This $41.4 million transaction showcased Ascension’s ability to deliver outstanding results under time-sensitive conditions, specifically in terms of structuring sale leasebacks as acquisition financing for M&A deals. By securing the ideal buyer quickly and structuring the deal to maximize value for the private equity firm, Ascension enabled the client to unlock essential capital which contributed to the financing structure of the broader transaction.