St. Louis-based Angelica Corp. has entered into a definitive agreement to sell off substantially all of the assets of its Life Uniform retail division to Healthcare Uniform Co., a newly formed affiliate of private equity firm Sun Capital Partners. The purchase price will be approximately $12 million in cash and about $4 million on a note, plus assumption of approximately $6 million of liabilities. The transaction is expected to close by July 30. Morgan Joseph & Co. acted as financial advisor to Angelica in the transaction.
Angelica Corp. had announced back in February that it wanted focus on its core healthcare linen services business. The deal includes 193 retail healthcare uniform and shoe stores, as well as Life Uniform’s catalog, e-commerce and on-the-job shopping platform operations and associated inventory. Life Uniform’s remaining 20 store locations can be added to the sale at the buyer’s option, or will be closed by Angelica on or before closing the sale.
Sun Capital Partners, which focuses on leveraged buyouts, has invested in approximately 60 companies since its inception in 1995 with combined sales in excess of $8 billion. Sun Capital had owned Oshkosh, WI-based Miles Kimball for 18 months before selling the title to Greenwich, CT-based Blyth Corp. in March 2003.