Ascension Advisory facilitated a sale leaseback of a 255,000-square-foot food distribution facility in Philadelphia, Pennsylvania, on behalf of private equity client, Hidden Harbor Capital Partners, as part of their acquisition of Quaker Valley Foods. Quaker Valley Foods is a leading Philadelphia based wholesale food distribution facility that 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:
Hidden Harbor Capital Partners was in the process of acquiring Quaker Valley Foods 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, Hidden Harbor Capital Partners needed a seamless transaction that maximized value, met the company's operational requirements, and adhered to an expedited timeline.
Solution:
Ascension Advisory 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 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, Ascension enabled Hidden Harbor Capital Partners to unlock essential capital and support the financing of the broader transaction.