New York, NY, March 19, 2024 – Ascension Advisory, a leading corporate real estate advisory firm dedicated to providing real estate sale leasebacks for financial sponsors and business owners, has successfully completed an $11 million sale leaseback transaction on behalf of Operio Group, a premier manufacturer in the nutraceutical industry.
The Ascension Advisory team led this meticulously executed transaction which involved the exercising of a real estate purchase option along with a simultaneous sale leaseback. This strategic arrangement resulted in the generation of significant net proceeds for Operio Group.
Operio Group had recently expanded its business through the acquisition of the Elizabeth Companies. As part of the deal, Operio Group structured a purchase option at $5.33 million for the real estate that housed the manufacturing operations. With Ascension Advisory's guidance, Operio Group exercised this option and concurrently orchestrated a sale leaseback transaction at a price just north of $11 million. This move provided significant capital that Operio Group was able to use to pay down expensive mezzanine debt that the company had taken on as part of its recent acquisition.
The real estate presented a few challenges, such as title discrepancies and due diligence complexities. Ascension Advisory's strategic problem-solving led to negotiations that resolved these issues, allowing the transaction to reach a successful conclusion.
Chelsea Mandel, Founder and Managing Director of Ascension Advisory, commented on the transaction, "This achievement goes beyond the dollars generated for our client; it's also a reflection of our dedication to coming up with innovative solutions for our clients. We were faced with a number of challenges in this deal including a variety of title issues and existing leases associated with the properties, and the deal actually died a couple times. But our team and our client remained dedicated to finding a solution and we worked diligently and creatively and ultimately achieved a tremendously successful result for Operio Group."
Echoing this sentiment, Alastair Sanderson, CEO of Operio Group, shared, "It was great working with Chelsea and her team. The way that they were able to handle the unique challenges faced in this transaction was impressive. I am confident that we delivered the maximum value for the sellers, the buyers and our operating entity.”
About Ascension Advisory
Ascension Advisory is a corporate real estate advisory firm dedicated to providing real estate sale leasebacks for financial sponsors and business owners, globally. With strategically located offices in New York City, Miami, Toronto, Mexico City, London, and Madrid and a steadfast commitment to client service, Ascension Advisory assists sponsors and business owners in crafting and executing corporate real estate strategies that align with their strategic objectives. For more information about Ascension Advisory, please visit ascensionadvisory.com.
About Operio Group
Launched in 2022 and started from the seeds of LFA Machines and Vivion Inc., Operio Group was conceived from a simple idea: customers do not need machines or ingredients, they need solutions to make products. Operio has been set up to invest in companies that directly serve the food, beverage, nutraceutical and pharmaceutical manufacturing industries. Aiming to bring together multidisciplinary teams from different sections of the supply chain in the industries that it serves, Operio is able to not just provide products but support people through the consolidated knowledge of their brands. For more information, visit operiogroup.com.