Northleaf Capital Partners late last month led and arranged senior and mezzanine debt facilities backing the acquisition of Emerald Textiles LLC by Encore Textile Services LLC.
No financial terms were disclosed. Both companies in the transaction are U.S. providers of outsourced linen management services to the healthcare and hospitality industries.
Encore is a portfolio company of U.S. private equity firm Highland Avenue Capital Partners.
Based in Toronto, Northleaf is a private equity, infrastructure and private credit investment firm.
Northleaf Announces Investment in Encore Textile Services
TORONTO (July 31, 2018) – Northleaf Capital Partners (“Northleaf”) has led and arranged the senior and mezzanine debt facilities to support the acquisition of Emerald Textiles LLC (“Emerald”) by Encore Textile Services LLC (“Encore”), a portfolio company of Highland Avenue Capital Partners, LLC (“Highland Avenue”). Encore and Emerald provide outsourced linen management services to the healthcare and hospitality industries, and their combination will create one of the leading healthcare laundry services providers in California and Nevada.
“The Northleaf team was able to move quickly and creatively to provide a comprehensive customized capital structure solution enabling a transformative transaction for Encore. We are excited to partner with Northleaf as we position Encore for the next stage of growth,” said Chris Sznewajs, Managing Partner and Co-Founder of Highland Avenue.
“We are delighted to partner with Highland Avenue and Encore to facilitate the next step in the company’s growth,” said Mike Morris, Director at Northleaf. “Encore and Emerald both have outstanding reputations in the market, and we believe this transaction will create enormous benefits for the businesses and their customers.”
This transaction highlights Northleaf’s flexible approach to private markets investing, leveraging the firm’s integrated platform. Northleaf has the ability to provide senior debt, hybrid capital and equity capital to support owners of private, middle market companies in building value.
Matt Shafer, Managing Director at Northleaf, added: “We are very pleased that Encore and Highland Avenue chose Northleaf to provide a one-stop financing solution to facilitate such a compelling strategic transaction.”
About Northleaf Capital Partners
Northleaf Capital Partners is an independent global private markets fund manager with more than US$10 billion in private equity, private credit and infrastructure commitments under management on behalf of public , corporate and multi-employer pension plans, endowments, foundations, financial institutions and family offices. Northleaf’s 110-person team, located in Toronto, Montreal, London, New York, Chicago, Menlo Park and Melbourne, is focused exclusively on sourcing, evaluating and managing private markets investments globally. Northleaf’s current portfolio includes more than 250 active investments in 14 countries. For more information on Northleaf, please visit www.northleafcapital.com.
About Highland Avenue
Highland Avenue Capital Partners, founded by Chris Sznewajs and Chris Bryan, is a Los Angeles-based private investment firm with deep expertise in operations and growth enhancement in the middle market. Highland Avenue acquires controlling interests in businesses across multiple industries including industrials, building products, healthcare services and business services. Highland Avenue, in conjunction with its operating executives, partners with exceptional management teams to assist businesses in unlocking value and reaching their full potential. For more information, please visit www.highlandavefunds.com.
Encore Textile Services LLC is a leading outsourced linen management services provider to the healthcare and hospitality industries.
For more information, contact:
Investor and media inquiries:
+1 416 477 6623
Director, Private Credit
+1 312 871 4830
Managing Director, Private Equity
+1 646 844 1074