NEW
YORK, Nov. 1, 2023 /PRNewswire/ -- Oak Hill
Advisors ("OHA") served as a Lead Arranger for the private
financing supporting the merger of BradyIFS, a leading distributor
of foodservice disposables, janitorial and sanitation products and
non-perishable food products, and Envoy Solutions, a similar
specialty distribution business. OHA committed to over $500 million of the total unitranche facility as
part of the lender group that led the transaction.
BradyIFS is a portfolio company of Kelso & Company
("Kelso"). Under the merger agreement, Kelso and its affiliate
funds are joined by Warburg Pincus and its affiliate funds, along
with BradyIFS management, to collectively become majority owners in
the combined business and control the board. Fomento Económico
Mexicano, S.A.B. de C.V. ("FEMSA"), previously the majority owners
of Envoy Solutions, will maintain a significant minority share in
the combined company with representation on the board.
OHA has been a lender to BradyIFS since the company's formation
in 2021, when predecessor business Individual Food Services, owned
by Kelso, acquired Brady Industries. OHA was able to quickly assess
and develop conviction in this most recent financing opportunity by
leveraging its deep knowledge of the company, and by having
invested in similar businesses in both the syndicated and private
markets. This merger is expected to expand the national reach and
distribution opportunities for the combined business, and OHA is
pleased to continue to support the company's growth and development
in partnership with Kelso and the other equity holders.
"We are excited to support BradyIFS in this next phase of its
business evolution," said Eric
Muller, Portfolio Manager and Partner at OHA. "Since our
initial investment in the company, we have recognized its
competitive positioning and value proposition within this
distribution industry. We look forward to the synergies resulting
from the merger with Envoy Solutions."
This transaction also extends the long-standing relationship
that OHA has cultivated with sponsor partner Kelso as a lender to
various of its portfolio companies.
"We highly value our relationship with OHA and their ability to
anchor large transactions, lead terms and help execute on our
strategic initiatives for our portfolio companies," said
Mike Nichols, Partner and Managing
Director, Capital Markets at Kelso.
About OHA: OHA is a leading global alternative
investment firm specializing in private lending, distressed credit,
structured credit, real assets, special situations, leveraged loans
and high yield bonds. OHA manages approximately $63 billion of capital across credit strategies
in pooled funds, collateralized loan obligations and single
investor mandates as of September 30,
2023. The firm's global, primarily institutional investor
base includes pension funds, sovereign wealth funds, insurance
companies, foundations, endowments, fund of funds, family offices
and high net worth individuals. OHA is the private markets platform
of T. Rowe Price Group, Inc. (NASDAQ – GS: TROW). For more
information, please visit www.oakhilladvisors.com
About BradyIFS: With headquarters in Bell, CA,
and Las Vegas, NV, BradyIFS is a leading foodservice and
JanSan platform in North America. The company sources,
manages, and distributes a broad range of products to thousands of
customers in segments including education, healthcare, hospitality,
restaurants, building services, and more. For more information,
please
visit www.bradyindustries.com and www.individualfoodservice.com.
About Kelso: Kelso is a North
America-focused, middle market buyout private equity firm
founded in 1980 on the principles of partnership and alignment of
interest, an investment philosophy championed by Louis Kelso, the inventor of the Employee Stock
Ownership Plan (or ESOP). The Firm believes that a strong alignment
between management, employees and shareholders through shared
equity ownership leads to better performance. Utilizing a
disciplined and focused approach, the Firm invests in targeted
sectors where we have the expertise and capabilities to support our
management teams in working to drive accelerated growth. Kelso is
owned in its entirety by the employees of the Firm. Since
inception, Kelso has raised a total of 11 private equity funds and
invested approximately $19 billion of
equity capital in more than 140 companies. The Firm's investors
represent a diverse group of limited partners, including public and
corporate pensions, sovereign wealth funds, insurance companies,
consultants, financial institutions, and family offices. For more
information, please visit www.kelso.com.
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SOURCE OHA