Background:
Ascension Advisory is proud to represent Alco Manufacturing Corporation on a recent sale leaseback transaction. Alco is a world class supplier of precision machined components and fittings in steel, stainless steel, brass and aluminum, with products proudly made in the USA. Their 450+ employees span across 7 facilities including the subject property in Dexter, Michigan.
Client Objective:
The Company had previously partnered with Ascension to facilitate a sale leaseback of Alco’s other national production facilities, successfully closing with a sophisticated, institutional REIT. The Company sought to continue their relationship with this buyer and add in another property to the portfolio. By executing a sale leaseback of the Dexter facility, the Company sought to free up capital that could be reinvested into the business.
Solution:
The Ascension Advisory team reached out to the buyer of the previous transaction and given the success of their previous transaction, they expressed interest in purchasing the Dexter site in an off-market process. After negotiations on behalf of the Company, the Ascension team successfully led the deal to closing at attractive economics for the portfolio company and the sponsor. Both the Company and the buyer look forward to continuing their relationship and exploring future sale leaseback opportunities as Alco continues its growth.
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