Code Hennessy & Simmons LLC has acquired Web Service Co. Inc., a Redondo Beach, Calif.-based provider of laundry services on the West Coast. No financial terms were disclosed, except that the deal includes $100 million in senior subordinated notes (including $50m from Ares Capital).
Ares Capital Corporation (NASDAQ: ARCC) announced the closing of $50.0 million out of a total $100 million Senior Subordinated Notes facility for Web Service Company (“Web Service”). The proceeds from the investment were used in connection with the purchase of Web Service by Code Hennessy & Simmons LLC (“CHS”).
Commenting on the transaction, Mark Affolter, Managing Director of Ares Capital Corporation, stated, “We are pleased to be partnering with the management of Web Service and CHS. This represents the second investment out of our recently opened Chicago office, both of which have been with CHS.”
Adam Coffey of Web Service, said, “We are excited to partner with Ares Capital as its financial support will allow us to continue to expand our business. Our company has significant momentum and we expect to continue our growth strategy with the assistance of our new financial partners.”
Richard Lobo, Partner of CHS, stated, “Ares Capital’s speed, industry knowledge and flexible financing made them a natural partner for us in our acquisition of Web Service.”
Michael J. Arougheti, President of Ares Capital Corporation, stated, “We are happy to be able to support CHS with flexible capital at a time when many of our peers have pared back their lending activities.”
About Ares Capital Corporation
Ares Capital Corporation is a specialty finance company that is a closed-end, non-diversified management investment company. Ares Capital Corporation has elected to be regulated as a business development company under the Investment Company Act of 1940. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. Ares Capital Corporation invests primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component, and, to a lesser extent, in equity investments in private U.S. middle market companies. For additional information, please visit our website at www.arescapitalcorp.com.
About Web Service Company, Inc.
Headquartered in Redondo Beach, CA, Web Service is the West Coast’s leading laundry service provider serving multiunit locations, including apartment properties, condos, college and university residence halls and military bases. The Company offers a full range of services from the design, construction and installation of laundry equipment facilities to the continued operation and maintenance of those facilities. With over 260,000 machines installed in over 40,000 locations, the Company stresses its density with which it can leverage its service delivery platform as a competitive advantage. For more information, please visit the company’s website at www.weblaundry.com.
About Code Hennessy & Simmons LLC
CHS is a Chicago-based private equity firm specializing in private equity investments and recapitalizations of middle market companies in partnership with management. CHS targets well-managed companies focused on growth with enterprise values between $100 million and $1.0 billion. With particular expertise in the Business & Consumer Services, Consumer, Distribution, and Infrastructure & Industrial Products sectors, CHS has completed 73 platform investments and 173 add-on investments. Founded in 1988, CHS has formed five private equity funds and currently manages over $2.7 billion of capital. For additional information about CHS, please refer to the firm’s website at www.chsonline.com.