Introduction:
Ascension Advisory is pleased to announce the successful closing of a $9.5 million sale leaseback transaction on behalf of a prominent player in the auto recycling industry.
Client Objective:
The private equity client, recognizing the strategic value of the target’s real estate assets, aimed to unlock capital in order to finance the expansion of its operations in the auto recycling industry. The primary objective was to execute a sale leaseback transaction that would provide additional capital for the acquisition while ensuring continued operational presence at the Arizona locations.
Solution:
Engaging the seasoned expertise of Ascension Advisory especially in the outdoor storage asset class, the private equity client initiated a comprehensive sale leaseback analysis and marketing process. The deal team leveraged their industry knowledge and expansive investor network to facilitate the identification of an ideal buyer for the portfolio of the two facilities. The selected buyer, with a track record of successful acquisitions in the two Arizona subject markets, demonstrated a keen understanding of the client's goals and the growth opportunities of these player in the auto recycling industry.
Conclusion:
The sale leaseback transaction provided the private equity client with the necessary funds, which were strategically used as part of their capital stack for the M&A transaction. The terms of the leaseback were structured to align with the company's long-term objectives, ensuring continuing for the operating company. The positive collaboration with the selected buyer ensures a long-term and mutually beneficial partnership.