BETHESDA, Md., July 10, 2024 /PRNewswire/ -- IMB Partners ("IMB"), a leading lower middle market investment firm, announced the completion of a dividend recapitalization of its three portfolio companies, Alder Foods, Elite Brands and Richmond Wholesale (collectively, "Pro Food Solutions"), a leading food supplier to our Military and their families worldwide.

IMB Partners (PRNewsfoto/IMB Partners)

IMB began its journey in the military food sector with the acquisition of Alder Foods in 2016. Post recapitalizing Alder in 2019, IMB subsequently invested in Richmond Wholesale in 2020. One year later, in 2021, the firm invested in Elite Brands, ultimately forming its Military food supplier holding group, Pro Food Solutions.

Pro Food Solutions has closed on a $153 million debt financing, of which $130 million will be used to pay off existing debt and to fund a distribution to shareholders.

The recapitalization of Pro Food Solutions is the most recent example of IMB's Two-Step Buyout™ model, which typically pursues dividend recapitalization three to seven years after the initial investment. In the interim period, IMB extensively works with the company to grow the business, build out the operating team, open new sales channels, execute strategic initiatives, and pursue add-on acquisitions. IMB and the management team worked together to grow profitability and strengthen the organization, while simultaneously paying down debt. These value creation initiatives positioned the business well to refinance its balance sheet and generate a significant realization for IMB equity investors and legacy family owners.

"As part of IMB Partners' mission, we bring our relationships and networks to each investment partnership so we can help build out management teams, grow sales, and develop more diverse workforces and supply chains," says Tarrus Richardson, Founder & CEO of IMB Partners. "This transaction highlights IMB's partnership approach and the value creation we were able to offer our partners as a result of this recapitalization."

Comvest Credit Partners ("Comvest"), a leading provider of flexible direct financing solutions to middle-market companies, provided the $153 million total senior debt facilities.

Willkie Farr & Gallagher LLP served as legal counsel to Pro Food Solutions and IMB Partners.

About IMB Partners: Founded in 2010, IMB is a private equity sponsor focused on investing and partnering with management teams to grow lower middle market companies serving government agencies and utilities. IMB believes that diversity is an asset and takes an entrepreneurial approach to building companies of scale. IMB seeks platform investment targets with $10-$250 million in revenue. Learn more at imbpartners.com or connect with us on LinkedIn.

About Comvest Credit Partners: Comvest Credit Partners, the direct lending platform of Comvest Partners, focuses on providing flexible financing solutions to middle-market companies. Comvest Credit Partners provides senior secured, unitranche, and second lien capital to sponsored and non-sponsored companies in support of growth, acquisitions, buyouts, refinancings, and recapitalizations, with credit facilities up to $250 million-plus. For more information, please visit comvest.com/direct-lending.

About Comvest Partners: Comvest Partners is an operationally focused private investment firm that has provided equity and debt capital to well-positioned middle-market companies throughout North America since 2000. Through its private equity, direct lending and special opportunities investment platforms, Comvest offers tailored investment solutions across the capital structure, deep industry and operating expertise, a collaborative approach, and significant transaction experience as an active investor. Today, Comvest manages $10.4 billion in assets, and has invested over $12.4 billion since inception. Based in West Palm Beach, Comvest also maintains offices in Chicago and New York. For more information, please visit www.comvest.com.

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