Bain Buys Imperial Dade, Audax Remains Investor
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Bain Buys Imperial Dade, Audax Remains Investor

Bain Capital Private Equity has signed an agreement to acquire Imperial Dade, a distributor of disposable food service and janitorial supplies, from Audax Private Equity. Audax made a growth equity investment in Imperial Dade in January 2016 and will remain an investor in the company alongside Bain Capital.

Imperial Dade is one of the largest distributors of disposable food service and janitorial supplies in the Northeast, Mid-Atlantic, Southeast, and Midwest regions and Puerto Rico. The company has more than 15,000 SKUs and approximately 40,000 customers that are active in cruise lines, education, hospitality, sports & entertainment, food service, food processing, healthcare, government and grocery.

Imperial Dade has 2,300 employees and operates through 29 branches in 13 states with over 620 fleet vehicles. Imperial Dade has headquarters in Jersey City, NJ and Miami, FL (www.imperialdade.com).

Imperial Dade was formed in 1935 and was purchased by CEO Robert Tillis and President Jason Tillis (father and son) in 2007 with backing from Cyprium Partners. The company was originally known as Imperial Bag & Paper but change its name after acquiring Miami-based Dade Paper & Bag in June 2017.

Since 2007, Imperial Dade has made 19 add-on acquisitions with 13 of them occurring since Audax invested in the company. The most recent buy was the purchase in April 2019 of Woodside, NY-based Edmar Cleaning Corp., a distributor of paper, plastic, chemicals, and janitorial supplies to customers in New York, New Jersey, and Connecticut.

“During our partnership, the Imperial Dade team executed an aggressive buy and build strategy,” said Don Bramley, a managing director at Audax. “The company completed 13 acquisitions, expanding the geographical footprint, broadening its product and service offerings, and driving organic growth while maintaining its culture and differentiated service quality. We wish Robert, Jason, and the rest of the Imperial Dade management team continued success in their partnership with Bain Capital and look forward to remaining invested in the business.”

Imperial Dade will continue to be led by its current management team and they will remain significant investors in the company. “We are pleased to welcome an experienced investment partner who shares our vision for building Imperial Dade into a national distributor of foodservice and janitorial supplies, and who will support our efforts to seize the many opportunities we see in the marketplace,” said CEO Robert Tillis.

“Imperial Dade is a proven winner. Over the past 12 years, the Tillis family has done an exceptional job of building a structurally advantaged market leader,” said Ken Hanau, a managing director at Bain Capital. “We look forward to partnering with this talented management team to accelerate their acquisition strategy, build on their foundation of commercial and operating excellence, and ultimately create a best in class distribution business with national reach.”

Bain Capital Private Equity was founded in 1984 and invests in the consumer and retail; financial and business services; healthcare; industrials; and technology, media and telecommunications sectors. The firm has a team of approximately 240 investment professionals with 19 offices on four continents including offices in Boston, Chicago, New York, San Francisco, Dublin, London, Munich, Melbourne, Mumbai, Hong Kong, Shanghai, Sydney and Tokyo (www.baincapitalprivateequity.com).

Audax invests in middle market companies that have from $8 million to $50 million in EBITDA and enterprise values of $50 million to $400 million. Sectors of interest include business and consumer services; energy; healthcare; technology, media and telecom; and industrials including chemicals, infrastructure and building materials. Audax has offices in Boston, New York and San Francisco (www.audaxgroup.com).

Harris Williams is the M&A advisor to Imperial Dade with the transaction led by Managing Director Bob Baltimore and Vice President Graham Gillam of Harris Williams’ Specialty Distribution Group, and Director Anthony Basmajian of the firm’s Richmond office.

“Robert and Jason Tillis, in partnership with Audax, have built a company that is a clear market leader and thrives on a culture of innovation and unwavering service to its customers,” said Mr. Baltimore. “We are excited to have found a great partner for our client in Bain Capital that shares in management’s strategic vision for the business.”

This transaction is backed by fully committed debt financing. Credit Suisse, Barclays, and Goldman Sachs are serving as financial advisors to Imperial Dade.

Closing is expected by the end of the second quarter.

© 2019 Private Equity Professional | May 2, 2019

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