SGS, a global provider of design and packaging artwork services, and investment funds managed by SVPGlobal, a global investment firm with more than $18 billion in assets under management, as well as the largest existing holder of SGS’ outstanding funded indebtedness, completed a recapitalization transaction to strengthen SGS’s balance sheet and position the business for growth.
“Over the last few years, we have made significant progress on our multi-year strategic plan to grow our business by investing in our employees, improving our cost structure, increasing our speed to market and repositioning our commercial model,” Piyush Chaudhari, CEO of SGS, said. “The transaction we completed today is an important next step in the process, as it will provide us a stronger financial foundation by which to accelerate our transformation. Moreover, it represents a vote of confidence in the business and the actions we are taking to position SGS for the future. We look forward to our continued partnership with SVPGlobal and moving forward as a stronger company that is even better able to deliver the creative and technical solutions that truly set SGS apart.”
“SGS is a global leader with a strong business model and differentiated, innovative solutions and insights supporting some of the world’s largest brands,” Victor Khosla, founder and chief investment officer of SVPGlobal, said. “We are pleased to expand our partnership with the SGS team and are committed to supporting them as they drive growth and enable their clients to form deeper connections with consumers around the world.”
As part of the transaction, SVPGlobal is investing new cash equity for a majority of SGS’ equity. In connection with the recapitalization, SGS closed a new senior secured credit facility and a new securitization facility.
Evercore is serving as financial advisor to SGS and Fried, Frank, Harris, Shriver & Jacobson is serving as its legal advisor. Gibson, Dunn & Crutcher is serving as legal advisor to SVPGlobal. HPS Investment Partners led the financing for the investment.
