Acosta has successfully completed its financial reorganization and recapitalization and emerged from Chapter 11 less than a month after filing.
Through the process, Acosta eliminated all of its approximately $3 billion of long-term debt, and its new investors have funded $325 million in new equity capital.
The reorganized company’s largest shareholders include funds associated with Elliott Management, Oaktree Capital Management, Davidson Kempner, and Nexus Capital Management. The investor group is composed of funds that manage nearly $200 billion and have made a strategic decision to capitalize the business with the new equity capital and zero funded debt.
A newly reconstituted board of directors will be comprised of Acosta’s CEO Darian Pickett, representatives from the new ownership group and other premier industry experts.
“We are starting this new year by launching an exciting new chapter for Acosta and our key stakeholders,” said Pickett. “We are pleased that we have completed this process as quickly and efficiently as possible. We sincerely thank all of our employees, clients, customers and other business partners for their continued commitment to Acosta. We now have the strongest balance sheet in the industry. Looking ahead, our focus remains on working hard and delivering innovative advancements and industry-leading solutions in order to be the strongest possible partner for our clients and customers.”
Kirkland & Ellis is acting as legal counsel for the company, PJT Partners as financial advisor, and Alvarez & Marsal as restructuring advisor. White & Case is acting as legal counsel for certain supporting creditors. Sullivan & Cromwell is acting as legal counsel for certain other supporting creditors. Arnold & Porter Kaye Scholer is acting as legal counsel for a minority group of first lien lenders. Davis Polk & Wardwell is acting as legal counsel for an ad hoc group of lenders and Centerview Partners is acting as financial advisor.
Acosta provides a range of outsourced sales, marketing and retail merchandising services throughout the U.S., Canada and Europe.