Industrial Food Distribution Sale Leaseback in Louisiana

Background:

The Ascension Advisory team represents the private equity owner of a leading food distributor. The private equity firm recently acquired a Louisiana-based specialty food distributor as a strategic add-on to the existing platform. The add-on business serves their diverse base of clients including restaurants, correctional facilities, and educational institutions out of its 60,000+ SF facility in Louisiana, and their addition to the platform will enable the company to continue their expansion into the Louisiana and Texas markets.

Client Objective:

By executing a sale leaseback of the newly acquired site, the client sought to effectively reduce the acquisition price of the add-on, while freeing up capital that could be reinvested into the business. 

Solution:

The Ascension Advisory team ran a competitive marketing process, with outreach focused on their robust network of professional investment funds focused on the acquisitions of sale leasebacks. Ultimately, a buyer was selected who offered attractive lease terms and the flexibility desired by the client, and Ascension led to deal towards a successful close at a purchase price of $6.375M and strong cap rate for the real estate.