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Pacific Avenue Capital Partners Reaffirms Its Long-Term Commitment to Emerald Textiles Through a Continuation Investment Vehicle Dedicated to the Portfolio Company
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LOS ANGELES, Aug. 16, 2021 /PRNewswire/ -- Pacific Avenue Capital Partners, LLC ("Pacific Avenue"), a Los Angeles-based private investment firm focused on complex situations in the middle market, announced that it has raised new capital to purchase Emerald Textiles ("Emerald" or the "Company"), the leading provider of fully outsourced healthcare linen management services in the Western United States, from existing limited partner investors through a continuation vehicle. 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. The vehicle is funded by a group of leading institutional investors including Glendower Capital, funds and accounts managed by BlackRock Private Equity Partners, DWS Private Equity, Allstate Investments, CH Investment Partners, and other blue-chip investors. Furthermore, the transaction includes a significant investment from the Emerald management team and Pacific Avenue. The transaction includes more than $200 million of committed equity capital to support the Company's next phase of growth and to buy out certain limited partners. The transaction also includes a refinancing of the Company's existing credit facilities with funds managed by the Credit Group of Ares Management Corporation providing a unitranche solution and Wells Fargo Capital Finance providing an ABL revolver. "Pacific Avenue, alongside the Emerald team, have transformed the linen services landscape in the Western United States. The continuation vehicle represents our continued focus building a world-class healthcare linen provider that serves the market," said Chris Sznewajs, Founder and Managing Partner of Pacific Avenue. "We are thankful for the partnership of our equity partners and their support validates Pacific Avenue's disciplined investment approach." Emerald is the leading provider of outsourced linen management services and specialty products to hospitals, clinics, and other healthcare facilities in the Western United States. The Company provides a full suite of products encompassing traditional linens and add-ons (e.g., mops, mats, scrubs, and isolation gowns), and is committed to providing the best value-proposition to customers through the highest quality and service. The Company has experienced impressive growth and a significant overall transformation through add-on acquisitions, greenfield expansion, large customer wins, and meaningful operational improvements. Today, Emerald operates six modern processing facilities and two distribution centers across California, Nevada, and Utah, serving over 750 customer sites. "This is an exciting day for our Company, employees, supply partners, and customer partners. 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," said Andy Kratky, Chief Executive Officer of Emerald. "The continuation vehicle allows us to leveraging 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 successful acquisition strategy. As part of this transaction, Ocean Avenue Capital Partners ("Ocean Avenue"), a limited partner in the original Emerald transaction, exited its investment in Emerald. "Pacific Avenue has been an excellent partner on our investment in Emerald," said Jacques Youssefmir, a Founding Partner at Ocean Avenue. "Chris Sznewajs and the team mapped out an aggressive strategy to build the premier healthcare linen provider in the Western United States through organic growth and synergistic M&A. They, along with Greg Anderson (founder of the original platform company) and the Emerald management team, executed on the plan to create a world-class platform. We are very pleased with the outcome of our investment, and wish Pacific Avenue and the Emerald team continued success in executing on their plan." Jones Day served as M&A legal and debt counsel to Pacific Avenue. Weil, Gotshal & Manges LLP is serving as counsel for the continuation fund. Piper Sandler & Co. and Stephens Inc. advised on the private debt financing. UBS Investment Bank acted as the exclusive placement agent for the equity financing. Pacific Avenue will act as the general partner of the single asset vehicle. About Pacific Avenue Capital Partners
Pacific Avenue Capital Partners, founded by Chris Sznewajs in 2017, is a Los Angeles-based private investment firm focused on corporate divestitures and other complex situations in the middle market. Pacific Avenue has extensive M&A and operations experience allowing the firm to navigate complex transactions and unlock value through operational improvement, capital investment, and accelerated growth. The Pacific Avenue portfolio exceeds more than $800 million in revenue. Pacific Avenue takes a collaborative approach in partnering with strong management teams to drive strategic change and assist businesses in reaching their full potential. For more information, please visit www.pacificavenuecapital.com . Contact:

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Pacific Avenue Capital Partners Completes Continuation Vehicle Investment With Emerald Textiles

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Emerald Textiles (“Emerald” or the “Company”), a portfolio company of      Los Angeles-based private investment firms Pacific Avenue Capital      Partners, LLC (“Pacific Avenue”) and Highland Avenue Funds, LLC      (“Highland”), announced that Richard (“Rich”) Bott has joined the      executive management team and was appointed CEO. Mr. Bott’s appointment      follows Emerald’s recent announcement of its expansion into Los Angeles      and the San Diego Market as well as its greenfield expansion in Northern      California. “We are excited to have a leader of Rich’s caliber joining the Emerald      team. Rich has a proven track record of success, high integrity, and      brings over twenty-five years of experience in the healthcare service      industry,” said Chris Sznewajs, Chairmen of the Board of Directors of      Emerald Textiles and Managing Partner & Founder of Pacific Avenue      Capital Partners. “We believe Rich’s deep experience in the healthcare      linen and service industry, as well as his strong business sense and      collaborative approach, make him the ideal candidate to lead Emerald      through its next stage of growth.”
Greg Anderson will transition to Executive Chairman and will continue to      support the business in a daily role, overseeing the integration of the      recent acquisitions of the San Diego and Los Angeles facilities, while      also providing oversight for the greenfield facility that is underway in      Livingston, CA. Greg will remain a member of the Board of Directors and      will lead several other key strategic initiatives for Emerald. “We are      excited for Greg’s evolving role as he continues as a key partner to      Emerald Textiles. Greg has done an excellent job leading the business      through an impressive transformation. I look forward to Greg’s continued      involvement in the organization,” Chris Sznewajs added. “We are excited to have Rich join our team and lead Emerald as the      company enters its next phase of growth,” said Greg Anderson. He      continued, “Rich shares our vision of excellent quality and customer      service at a competitive price. Emerald has invested heavily in all of      its facilities in San Diego, Los Angeles, Turlock, Livingston and Reno      to ensure it has the most modern, safe, and efficient facilities in the      industry. I look forward to supporting and working closely with Rich in      my new role as Executive Chairman.”
Greg added, “I want to thank Pacific Avenue and Highland for their      support of my vision to scale and grow the company over the last      eighteen months. I also want to thank all Emerald Team Members, which is      over 1,000 strong for their dedication and support of the Company’s      vision.”
Prior to Emerald, Rich served as the Director of Intermountain      Healthcare’s Supply Chain Services, which includes Central Laundry,      Design and Print Services, Corporate Travel, Supply Chain Guidance      Council, Fleet Management and Sign Center. Before Rich joined      Intermountain Healthcare, he served as a medic and LPN in the 328th      General Hospital unit of the 96th ARCOM where he began his nursing      education at the Academy of Health Sciences. He then was trained      clinically at Brooke Army Medical Center at Fort Sam Houston in San      Antonio, Texas and then at Fitzsimons Medical Center in Aurora, Colorado. “The Emerald Textiles team has shown an incredible commitment to      providing fantastic service at an undeniable value while scaling the      organization through both organic growth, acquisitions, capital      investments and greenfield opportunities,” said Rich Bott. “It is my      pleasure to join this exceptional management team and employee base in      continuing to enhance our value proposition and service to our      customers.”
Rich is active in the community serving as Board Chair for The Columbus      Community Center, Committee Chairman for the Boy Scouts of America and      has been a delegate for Davis County. Richard also serves as the      President Elect of The Association for Linen Management and serves on      the board of the International Association for Healthcare Textile      Management. Rich holds an Associates of Nursing Degree from The Academy of Health      Sciences, a Bachelor's degree in Business Management and Health Services      Administration from Weber State University and a Master’s Degree in      Business Administration from the University of Phoenix. Richard is a      native of Utah and currently resides in Mountain Green, with his wife      Darcie and their four children. About Pacific Avenue Capital Partners
Pacific Avenue Capital Partners, founded by Chris Sznewajs, is a Los      Angeles-based private investment firm. Pacific Avenue, in conjunction      with its operating executives, Pacific partners with exceptional      management teams to assist businesses in unlocking value and reaching      their full potential. Pacific Avenue has a unique experience base in      industrials, business services, healthcare services, and business      products that allows the firm to differentiate itself from traditional      private equity. Pacific Avenue's current portfolio has more than $750      million in combined revenue. For more information, please visit www.pacificavenuecapital.com . About Highland Avenue Capital Partners
Highland Avenue Capital Partners, founded by Chris Bryan, is a Los      Angeles-based private investment firm with deep expertise in operations      and growth enhancement in the middle market. Highland Avenue acquires      controlling interests in businesses across multiple industries including      specialty distribution, healthcare services and business services. For      more information, please visit  www.highlandavefunds.com . About Emerald Textiles
Emerald Textiles is the leading commercial healthcare laundry and linen      service business on the West Coast. Emerald Textiles was created through      the combination of Emerald Textiles and Encore Textile Services in July      2018. The company has locations in Los Angeles, San Diego, Turlock,      Livingston, Riverside and La Selva Beach, CA as well as Reno, NV. For      more information, please visit  www.emeraldus.com . View source version on businesswire.com: https://www.businesswire.com/news/home/20190121005455/en/
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Emerald Textiles : Deepens Management Team by Hiring New CEO, Richard Bott

“We are excited to have a leader of Rich’s caliber joining the Emerald      team. Rich has a proven track record of success, high integrity, and      brings over twenty-five years of experience in the healthcare service      industry,” said Chris Sznewajs, Chairmen of the Board of Directors of      Emerald Textiles and Managing Partner & Founder of Pacific Avenue      Capital Partners. “We believe Rich’s deep experience in the healthcare linen and service industry, as well as his strong business sense and      collaborative approach, make him the ideal candidate to lead Emerald      through its next stage of growth.”
Greg Anderson will transition to Executive Chairman and will continue to      support the business in a daily role, overseeing the integration of the      recent acquisitions of the San Diego and Los Angeles facilities, while      also providing oversight for the greenfield facility that is underway in      Livingston, CA. Greg will remain a member of the Board of Directors and      will lead several other key strategic initiatives for Emerald. “We are      excited for Greg’s evolving role as he continues as a key partner to      Emerald Textiles. Greg has done an excellent job leading the business      through an impressive transformation. I look forward to Greg’s continued      involvement in the organization,” Chris Sznewajs added. “We are excited to have Rich join our team and lead Emerald as the      company enters its next phase of growth,” said Greg Anderson. He      continued, “Rich shares our vision of excellent quality and customer      service at a competitive price. Emerald has invested heavily in all of      its facilities in San Diego, Los Angeles, Turlock, Livingston and Reno      to ensure it has the most modern, safe, and efficient facilities in the      industry. I look forward to supporting and working closely with Rich in      my new role as Executive Chairman.”
Greg added, “I want to thank Pacific Avenue and Highland for their      support of my vision to scale and grow the company over the last      eighteen months. I also want to thank all Emerald Team Members, which is      over 1,000 strong for their dedication and support of the Company’s      vision.”
Prior to Emerald, Rich served as the Director of Intermountain      Healthcare’s Supply Chain Services, which includes Central Laundry,      Design and Print Services, Corporate Travel, Supply Chain Guidance      Council, Fleet Management and Sign Center. Before Rich joined      Intermountain Healthcare, he served as a medic and LPN in the 328th      General Hospital unit of the 96th ARCOM where he began his nursing      education at the Academy of Health Sciences. He then was trained      clinically at Brooke Army Medical Center at Fort Sam Houston in San      Antonio, Texas and then at Fitzsimons Medical Center in Aurora, Colorado. “The Emerald Textiles team has shown an incredible commitment to      providing fantastic service at an undeniable value while scaling the      organization through both organic growth, acquisitions, capital      investments and greenfield opportunities,” said Rich Bott. “It is my      pleasure to join this exceptional management team and employee base in      continuing to enhance our value proposition and service to our      customers.”
Rich is active in the community serving as Board Chair for The Columbus      Community Center, Committee Chairman for the Boy Scouts of America and      has been a delegate for Davis County. Richard also serves as the      President Elect of The Association for Linen Management and serves on      the board of the International Association for Healthcare Textile      Management. Rich holds an Associates of Nursing Degree from The Academy of Health      Sciences, a Bachelor's degree in Business Management and Health Services      Administration from Weber State University and a Master’s Degree in      Business Administration from the University of Phoenix. Richard is a      native of Utah and currently resides in Mountain Green, with his wife      Darcie and their four children. About Pacific Avenue Capital Partners
Pacific Avenue Capital Partners, founded by Chris Sznewajs, is a Los      Angeles-based private investment firm. Pacific Avenue, in conjunction      with its operating executives, Pacific partners with exceptional      management teams to assist businesses in unlocking value and reaching      their full potential. Pacific Avenue has a unique experience base in      industrials, business services, healthcare services, and business      products that allows the firm to differentiate itself from traditional      private equity. Pacific Avenue's current portfolio has more than $750      million in combined revenue. For more information, please visit www.pacificavenuecapital.com . About Highland Avenue Capital Partners
Highland Avenue Capital Partners, founded by Chris Bryan, is a Los      Angeles-based private investment firm with deep expertise in operations      and growth enhancement in the middle market. Highland Avenue acquires      controlling interests in businesses across multiple industries including      specialty distribution, healthcare services and business services. For      more information, please visit  www.highlandavefunds.com . About Emerald Textiles
Emerald Textiles is the leading commercial healthcare laundry and linen      service business on the West Coast. Emerald Textiles was created through      the combination of Emerald Textiles and Encore Textile Services in July      2018. The company has locations in Los Angeles, San Diego, Turlock,      Livingston, Riverside and La Selva Beach, CA as well as Reno, NV. For      more information, please visit  www.emeraldus.com . View source version on businesswire.com: https://www.businesswire.com/news/home/20190121005455/en/
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Emerald Textiles Deepens Management Team by Hiring New CEO Richard Bott

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