PRIVATE EQUITY
STRUCTURED CAPITAL

CASE STUDIES

Industry Vertical
Industrial Services
Headquarters
Kieler, WI

www.pssi.co
Exited: 2018

Packers Sanitation Services, Inc

  • Business

    Packers Sanitation Services, Inc. (“PSSI”) is North America’s largest and only nationwide provider of mission-critical outsourced cleaning and sanitation services to the growing food processing industry. PSSI has experienced 28+ years of growth driven by continued outsourcing of cleaning and sanitation services and market share gains in large, stable end markets, which has been supplemented by several acquisitions. At approximately three times the size of its closest competitor with approximately 500 customer locations, PSSI serves a broad customer base of protein and non-protein (e.g., bakery, produce, snack food) processing plants.

  • Situation

    Harvest was made aware of PSSI in March 2011 due to business development activities in the business and industrial services sector and prior experience in the outsourced cleaning and sanitation industry. Harvest communicated its strong interest to the selling sponsor with whom Harvest had developed a strong relationship over several years. Harvest was permitted to begin work ahead of the sale process and ultimately completed diligence and delivered a highly credible bid ahead of other bidders. This created a competitive advantage for Harvest as it provided the seller with a higher level of confidence in Harvest’s proposal versus the rest of the field.

  • Harvest Partners Investment

    In June 2011, Harvest purchased PSSI with the existing management team. To fund the acquisition Harvest arranged the debt financing, which included a senior credit facility and a mezzanine note. In addition, Harvest underwrote and syndicated significant equity co-investment capital.

    In December 2014, Harvest recapitalized PSSI. To fund the recapitalization Harvest and Leonard Green & Partners provided equity capital and arranged a senior credit facility, a mezzanine note and preferred equity.

  • Investment Thesis

    • Leading provider of mission critical services
    • Steady end markets with continued outsourcing penetration
    • Long term, recurring relationships with blue chip customers
    • Outstanding free cash flow profile
  • Value Creation

    • Increased end market growth, penetration and share gains
    • Expanded into new markets and services
    • Executed on acquisition strategy
    • Bolstered infrastructure and strategic support