Harvest Partners to seek buyer for PSSI

Harvest Partners is putting Packer Sanitation Services Inc (PSSI) up for sale, three sources said.

Harris Williams is advising, the persons said. It is unclear how much Packer Sanitation will fetch.

Harvest Partners has been out discussing options for the company, but PSSI is currently not on the block, one of the sources said. The company may go up for sale later this year, the person said. “It’s really, really early,” the source said.

Founded in 1971, PSSI provides outsourced cleaning and sanitation services for the food processing industry. Kieler, Wisconsin-based PSSI employed more than 9,000 people in 2011, according to a statement from that time. PSSI, since December 2012, has made four add-ons including the buys of Superior Contract Cleaners, DCS Sanitation Management, Contract Services Limited and StartKleen.

Harvest Partners acquired PSSI from Blue Point Capital Partners in June 2011. Harris Williams also advised PSSI in the sale to Harvest.

The PE firm’s investment came from its fifth fund, according to FTC documents. Harvest Fund V collected $816 million in 2007. The pool is producing a net IRR of 19 percent and 1.6x investment multiple as of Dec. 31, according to performance data from the California Public Employees’ Retirement System.

Harvest Partners, of New York, invests in mid-market companies in North America. The firm targets sectors such as business and industrial services, manufacturing and distribution, and healthcare. Harvest invests $50 million to $200 million of equity per deal, the firm’s website said.

The PE firm is currently investing out of its sixth fund, which closed at $1.1 billion in 2012. Performance data for Fund VI was unavailable.

Executives at Harvest declined comment. Harris Williams and PSSI could not immediately be reached for comment.

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