Recapitalization Transaction Provides
$114 Million in New Money Financing
and More Than $200
Million in Total Debt Reduction
Industrial Opportunity Partners to
Become Majority Shareholder with Goldman Sachs Asset Management
Retaining Significant Minority Ownership
FRANKLIN
PARK, Ill., May 2, 2024
/PRNewswire/ -- Transcendia Holdings, Inc. ("Transcendia" or
the "Company"), a leader in manufacturing and converting custom
engineered films, today announced it has entered into an agreement
for a recapitalization transaction that will strengthen the
Company's financial position and create a sustainable, long-term
capital structure for the next phase of growth. The transaction
will provide Transcendia with $114
million in new capital, eliminate more than $200 million of the Company's debt and further
strengthen Transcendia's competitive position in the market with
additional operating resources.
Under the terms of the agreement, an investment fund managed by
Industrial Opportunity Partners ("IOP") and investment funds
managed by Goldman Sachs Asset Management will lead the capital
infusion and recapitalization, which has received unanimous support
from the Company's existing second lien lenders and is further
supported with a new first lien credit facility from General
Atlantic Credit's Atlantic Park Fund. As a result of the
transaction, IOP will assume majority ownership of Transcendia,
while Goldman Sachs Asset Management, its existing equity sponsor,
will maintain a significant minority stake.
"This transaction provides us with additional capital and
financial flexibility to continue building upon the significant
progress we have made on several transformational initiatives to
improve our cost structure, optimize our facility footprint and
grow our business. Our 2021 $40
million expansion in our Hebron,
Ohio facility increased our barrier film manufacturing
capabilities for biopharmaceutical, food and beverage, and
specialty industrial packaging, allowing us to expand into new
markets and serve new customers," said John
Bagnuolo, President and CEO of Transcendia. "This investment
is a vote of confidence in our Invest to Grow strategy, our
capabilities and our team. We look forward to having the support
and operating resources of IOP, in addition to continuing our
partnership with Goldman Sachs Asset Management."
"Transcendia is a leading, global film manufacturer and
converter with a strong, resilient business, and the Company is
well-positioned for continued profitable growth," said Kyle Kirk, Director at IOP. "We are confident in
the leadership team's ability to continue executing the business
transformation, delivering consistent, high-quality products and
service to customers, and realizing various value-creation
opportunities. In addition, we look forward to providing the
Company with additional resources to accelerate its momentum and
expansion into additional growth markets."
"We commend John and the entire Transcendia management team for
all they have accomplished to reposition and strengthen the
business," said Simon Kubbies, Managing Director at Goldman Sachs.
"We are pleased to continue our partnership with Transcendia as the
Company builds upon its existing infrastructure, capabilities and
talent to provide customers with solutions for more demanding and
challenging barrier packaging applications."
Advisors
Fried, Frank, Harris, Shriver & Jacobson LLP is serving as
legal advisor to Transcendia. Winston & Strawn LLP is serving
as legal advisor to IOP. Greenberg Traurig, LLP is serving as legal
advisor to Goldman Sachs Asset Management. Guggenheim Securities,
LLC is serving as financial advisor to the existing second lien
lenders, and Simpson Thacher & Bartlett LLP and Proskauer Rose
LLP are serving as legal advisors to the existing second lien
lenders. Paul, Weiss, Rifkind, Wharton & Garrison LLP is
serving as legal advisor to General Atlantic Credit.
About Transcendia
Transcendia, Inc. is a leader in manufacturing and converting
custom engineered materials designed to protect products and keep
people safe and healthy. The company serves over 2,300 customers
globally who rely on its broad material science expertise,
extensive technology platform and best-in-class quality systems for
their most complex application needs. Founded in 1931, Transcendia
has decades of experience working collaboratively with customers to
develop film solutions for the healthcare, food and beverage,
specialty industrial, and print and publishing end markets.
Headquartered in Franklin Park,
IL, Transcendia operates 14 manufacturing facilities and
three distribution centers globally. To learn more, please visit
www.transcendia.com.
About Industrial Opportunity Partners
Industrial Opportunity Partners, an Evanston, Ill.-based private equity firm with
over $1.5 billion of committed
capital since inception, is dedicated to creating value through
investing in manufacturing and value-added distribution businesses
with sales between $50 million and
$500 million. IOP focuses on
businesses with strong product, customer, and market positions, and
provides management and operational resources to support sales and
earnings growth at its businesses. For more information, visit
IOP's website at www.iopfund.com.
About Goldman Sachs Alternatives
Goldman Sachs (NYSE: GS) is one of the leading investors in
alternatives globally, with over $450
billion in assets and more than 30 years of experience. The
business invests in the full spectrum of alternatives including
private equity, growth equity, private credit, real estate,
infrastructure, sustainability, and hedge funds. The business is
driven by a focus on partnership and shared success with its
clients, seeking to deliver long-term investment performance
drawing on its global network and deep expertise across industries
and markets. The alternative investments platform is part of
Goldman Sachs Asset Management, which delivers investment and
advisory services across public and private markets for the world's
leading institutions, financial advisors and individuals.
Established in 1986, Private Equity at Goldman Sachs Alternatives
has invested over $75 billion since
inception. The business combines a global network of relationships,
unique insight across markets, industries and regions, and the
worldwide resources of Goldman Sachs to build businesses and
accelerate value creation across its portfolios. Follow us on
LinkedIn.
About General Atlantic Credit
General Atlantic Credit ("GA Credit") is the dedicated credit
investment platform within General Atlantic, a leading global
growth equity firm. GA Credit leverages a demonstrated track record
of strategic credit partnerships across market cycles and capital
structures alongside General Atlantic's more than 40 years of
domain expertise and company-building capabilities. GA Credit's
Atlantic Park strategy provides flexible capital to high-quality
companies seeking a strategic partner at various stages of the
corporate and economic lifecycle. This partnership approach enables
Atlantic Park to create customized capital solutions tailored to a
company's specific capital needs. General Atlantic has
approximately $84 billion in assets
under management inclusive of all products as of March 31, 2024. For more information, please
visit: www.generalatlantic.com.
Transcendia
Michael
Freitag / Tim Ragones /
Haley Salas
Joele Frank, Wilkinson Brimmer
Katcher
+1-212-355-4449
Industrial Opportunity Partners
Bob Vedra / Kyle
Kirk
+1-847-556-3460
bvedra@iopfund.com / kkirk@iopfund.com
Goldman Sachs
Mary
Athridge
+1-212-934-0567
mary.athridge@gs.com
General Atlantic
Emily
Japlon / Sara Widmann
media@generalatlantic.com
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SOURCE Transcendia, Inc.