The Leeds based debt advisory team at business advisors Deloitte have advised on the refinancing of JLA following the sale of a minority interest by HgCapital to institutional investors. The combined return represents an investment multiple of approximately 3.5x over JLA’s holding period to date.
JLA, based in Ripponden, is one of the UK’s leading providers of commercial laundry and catering equipment on a contracted basis. HgCapital invested in the business in 2010 and, together with the management team, has since grown the business substantially, both organically and through acquisition.
Following the sale of a minority equity stake, HgCapital retains over 60 per cent of the equity in the company. The refinancing was funded by a combination of banks and alternative lenders, providing the company with a funding platform on which to progress its ambition for further growth.
Paul Humphreys, CFO of JLA said: “The transaction gives us access to a wide number of new investor and debt funder relationships. This provides us with substantial liquidity on which we will execute our strategic plan to drive further shareholder value.”
Anil Gupta, director at Deloitte, said: “We are delighted to have assisted the company in the transaction. The debt structure provides further evidence of the quality of JLA and its proposition. The combination of direct lending funds and banks provides the company with a balance of relationship driven lenders, whilst also providing access to additional pools of liquidity in the fund market.”
The company was also advised by Addleshaw Goddard and White and Case, with Deloitte also providing financial due diligence and tax structuring advice in support of the transaction.
Deloitte Debt Advisory in Leeds is part of Deloitte’s global Debt Advisory team which includes 140 professionals worldwide, and brings the total number of deals completed in the UK to over 50 in the last twelve months.