SAN DIEGO — July 31, 2018 — Encore Textile Services, a portfolio company of Los Angeles-based private investment firm Highland Avenue Capital Partners LLC, has announced the completion of the acquisition of Emerald Textiles, a San Diego-based healthcare linen service provider. The acquisition brings together the two largest independent healthcare laundry providers in California, with the combined entity having a total of five locations on the West Coast. The combined business will have an unparalleled ability to better serve all the needs of their large regional customers in both Northern and Southern California.
“We are excited to welcome the Emerald team to the Encore family. It is our belief Emerald’s team of experienced and respected professionals will complement the Encore team as we continue to scale the organization through organic growth, acquisitions and greenfield opportunities. Encore and Emerald are committed to providing the best value-proposition for current and future customers and look forward to continuing to serve our combined customer base with continued high-level service,” said Greg Anderson, CEO of the combined Encore and Emerald.
Under Highland Avenue’s ownership, Encore has grown through significant new customer wins, material investments in upgrading facilities and a universal commitment to servicing the customer.
“I am tremendously proud of what the Emerald team accomplished over the past eight years, and I am confident that the business is well positioned to continue to grow and thrive,” said Tom Gildred, CEO of Emerald.
Chris Sznewajs, co-founder and managing partner at Highland Avenue, added, “Highland’s original investment thesis centered around building scale while enhancing the Company’s ability to service its consolidating customer base. The addition of Emerald to the Encore platform is a realization of that thesis and allows us to serve the entire California market. We are excited about the two entities coming together and wanted to thank Tom Gildred and the entire Emerald team for building a great organization focused on their customers.”
Northleaf Capital Partners and AIG provided the debt financing for this transaction. Jones Day acted as Buyers counsel. Cooley LLP acted as legal counsel to Emerald. Latham & Watkins LLP, Paul, Weiss, Rifkind, Wharton & Garrison LLP provided debt counsel. VERCOR acted as financial advisor to Encore and Highland Avenue. Piper Jaffray & Co. served as sell-side financial advisor as well as advisor for the debt capital raise. Grant Thornton LLP and Ernst & Young LLP provided accounting advisory services.
Posted August 1, 2018
Source: Encore Textile Services
