Ontario Teachers’ Pension Plan has agreed to acquire a 29.7% interest in CSC ServiceWorks, a portfolio company of Pamplona Capital Management.
CSC ServiceWorks is the largest North American route-based service provider of multi-family housing and commercial laundry services, as well as a provider of air vending services to convenience stores and gas stations, with more than 1.4 million machines in service. Operating groups within CSC include: Coinmach Corp; ASI Campus Laundry Solutions; SDI Laundry Solutions; Sparkle Solutions Corp.; Appliance Warehouse of America; AIR-serv; AirValet Mac-Gray; and Super Laundry. CSC ServiceWorks has more than 3,000 employees and is headquartered in Plainview, NY (www.coinmachservicecorp.com).
“We are delighted to be partnering with Teachers’ Private Capital, one of the world’s leading investment groups, as we seek to further develop CSC as the premier provider of laundry and air vending services,” said Robert Warden, a partner at Pamplona.
CSC was created in May 2013 when Pamplona simultaneously acquired Coinmach Service Corp. and AIR-serv Group. Under Pamplona’s ownership, CSC has expanded its senior management team, invested in information technology and systems, completed several acquisitions, and grown organically, while nearly doubling EBITDA to greater than $325 million. CSC’s acquisitions have included Sparkle Solutions – Canada’s third-largest laundry route operator, and Mac-Gray Corporation – a large provider of laundry services in the US.
“CSC is a high-quality, stable business with excellent growth prospects and we are delighted to be investing alongside Pamplona,” said Jane Rowe, Senior Vice-President of TPC.
Pamplona Capital Management is an investment manager that provides an alternative investment platform across private equity, fund of hedge funds and single manager hedge fund investments. Pamplona manages over $10 billion in assets for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds. Pamplona is currently managing its fourth private equity fund, Pamplona Capital Partners IV LP, which was raised in 2014. The firm was founded in 2005 and has offices in London and New York (www.pamplonafunds.com).
Last month Pamplona agreed to buy Mobile, Alabama-based BBB Industries, a manufacturer and distributor of automotive parts. Other transactions this year have included the sale of an 8.5% stake in oil services company Nabors Industries; the acquisition of Beacon Rail Leasing, a lessor of locomotives in the UK and Europe; and the acquisition of a majority stake in Alvogen, a fast-growing pharmaceutical generics company.
Teachers’ Private Capital is one of the world’s largest private equity investors, having participated as a long-term investor in numerous management buyouts in Canada, the United States and Europe. It is the private investment department of the Ontario Teachers’ Pension Plan, the largest single-profession pension plan in Canada. Teachers’ Private Capital is based in Toronto with offices in New York and London (www.teachersprivatecapital.com).
Morgan Stanley acted as exclusive financial advisor to CSC and Pamplona on the transaction. Lowenstein Sandler provided legal advice to CSC and Pamplona on the transaction. Teachers’ investment in CSC was led by its private equity group, Teachers’ Private Capital.
2014 PEPD • Private Equity’s Leading News Magazine • 10-21-14
