Sale Leaseback for Gemspring Capital's Portfolio Company in Rhode Island

Ascension successfully completed a sale leaseback transaction on behalf of Gemspring Capital and their portfolio company, of their 190k-square-foot mission-critical manufacturing facility in Rhode Island. This transaction allowed the company to unlock significant capital while maintaining long-term operational control of its headquarters and manufacturing facility.

Client Objective

The company, a leading manufacturer of specialty bar soap, sought to monetize its real estate to generate accretive capital that it could use to reinvest into the operations. With a history spanning over 145 years, the company aimed to execute a sale leaseback while ensuring long-term continuity at its corporate headquarters and key production facility.

Solution

To meet the company’s objectives, Ascension ran a competitive sale leaseback marketing process, securing a buyer who was able to close on the transaction under very competitive terms. The Rhode Island facility is essential to the business, serving as both their headquarters and fully integrated manufacturing site. This coupled with the company’s financial strength helped the Ascension team secure a strong offer and flexible lease terms from an experienced sale leaseback investor.

As part of the sale leaseback, the company entered into a long-term, absolute triple-net (NNN) lease, committing to its headquarters for the foreseeable future and emphasizing the criticality of this manufacturing location. The lease includes annual rent escalations, providing stable and growing income for the new property owner while allowing the company to focus on its core business.

Conclusion

This transaction exemplifies Ascension’s ability to execute strategic sale leaseback solutions for private equity-backed portfolio companies, enabling ​them to optimize their capital structure while maintaining operational stability at their key facilities. By securing a buyer who recognized the facility’s value and the company’s strong financial profile, Ascension delivered a successful outcome that met the company’s objectives.