Emerald Textiles Gets Capital Infusion

Pacific Avenue Capital Partners LLC, a Los Angeles-based private-investment firm, announced that it has raised new capital to purchase Emerald Textiles from existing limited partner investors through a continuation vehicle. The transaction includes more than $200 million of committed equity capital to support Emerald’s next phase of growth and to buy out certain limited partners, according to a news release.

The transaction and Pacific Avenue’s continued involvement position Emerald to take advantage of significant market opportunities, while also providing liquidity for the original limited partners. Furthermore, the transaction includes a significant investment from the Emerald management team and Pacific Avenue. In addition to the $200 million of equity, the transaction also includes a refinancing of the company’s existing credit facilities.

“This is an exciting day for our company, employees, supply partners and customer partners,” said Andy Kratky, CEO of Emerald. “We have invested heavily in facilities and state-of-the-art equipment and have achieved incredible growth in partnership with Chris and the team over the past four years. The continuation vehicle allows us to leverage what we have done well and accelerate our investment plans to serve and provide value to all of our partners. Our deep commitment to customer service, superior cleanliness, resource preservation and safety have established Emerald as the leading provider of outsourced linen management services in the Western United States.”

The funding from the dedicated vehicle provides Emerald with access to additional equity capital that will enable the company to aggressively pursue its organic growth strategy as well as continue its acquisition strategy. As part of this transaction, Ocean Avenue Capital Partners, a limited partner in the original Emerald transaction, exited its investment in Emerald.

To read the full release, click here.