CIT Arranges Facility for TrustHouse’s Valley Services Acquisition
CIT Group Inc. announced that it has arranged a $117.5 million senior secured credit facility to TrustHouse Services Group, Inc. to finance its acquisition of Valley Services, Inc., a national food service management company and one of the largest meal providers in the country. TrustHouse is a portfolio company of Gryphon Investors, a middle-market private equity firm.
CIT Sponsor Finance served as joint lead arranger, joint bookrunner, and administrative agent for the transaction. Financing was provided by CIT Bank. Terms of the transaction were not disclosed.
“We are pleased to provide this financing to support TrustHouse’s acquisition of Valley Services,” said Eric Toizer, managing director of CIT Sponsor Finance. “TrustHouse now ranks as the nation’s sixth-largest food-services provider and the fourth-largest in the healthcare and education markets.”
Keith Stimson, a partner at Gryphon Investors, said: “Through the acquisition of Valley Services, TrustHouse is continuing its growth strategy to create a world-class food services business. We selected CIT to help lead the financing of this transaction because of the firm’s proven track record of supporting our businesses. Our longstanding relationship and familiarity with the CIT deal team served to provide flexibility and structuring guidance, which helped us close this transaction in an efficient manner.”
With its latest acquisition, TrustHouse significantly increased its geographic footprint and will have annual revenue in excess of $400 million and operations in 44 states.
TrustHouse Services Group is a provider in the healthcare and education-focused food services space and manages over 400 client accounts across more than 30 states.