CapX Partners (CapX) announced the closing of a $2.6 million customized equipment lease line of credit to Imperial Frozen Foods, a leading supplier of frozen fruits and fruit blends. Imperial will use the CapX lease facility to finance equipment for the company’s new production facility in Savannah, GA.
Founded in 1957, Imperial Frozen Foods is a leading supplier of frozen fruits and fruit blends. The company specializes in the global sourcing and packing of private brands for the retail and food service segments, serving private label retailers and supermarket chains throughout the U.S. Imperial strategically partners with brands such as Sunkist Growers, as well as offers its own brand, SunVale for retailers without their own private brand as well for distribution within the food service arena.
The company was introduced to CapX Partners by its Chicago-based private equity owners, Kenex Holdings. CapX learned that Imperial had generated consistent growth in recent years, but continued to be hindered by capacity constraints. Kenex and Imperial approached CapX to procure and finance packaging equipment that will allow Imperial to transition into a self-manufacturer, which will in turn alleviate capacity constraints.
CapX recognized the value in transitioning Imperial from a distributor to a vertically integrated frozen fruit platform. CapX provided a customized equipment lease line of credit that is being used to finance equipment for the company’s new production facility in Savannah, GA. CapX’s lease facility will fund state of the art packaging and bagging equipment for multiple production lines and will help provide needed capacity for growth while also helping to optimize logistics. CapX’s flexible approach will allow Imperial to efficiently purchase, install the equipment and have the plant fully operational to service growth in product demand.
“We are very happy with CapX. It was easy working with the CapX team to close the deal; information requests were manageable and they were quick to respond to inquiries. Funding has been very smooth. We look forward to a continued partnership with CapX,” says Nick Kuneman, Founding Partner, Kenex Holdings.
“It was a pleasure working with Imperial and Kenex on the transaction. Together, we structured a debt facility that’ll allow the Company to bring the manufacturing process in-house. We look forward to reviewing future growth capex opportunities with both Imperial and Kenex,” says Bryan Rozum, Director, CapX Partners.
Founded in 1999, CapX Partners (CapX) is a specialty finance company that focuses on private equity and venture backed portfolio companies looking for debt financing in the $2 million to $20 million range. CapX provides senior and mezzanine debt including lease lines and favors manufacturing, distribution, technology, energy and healthcare industries with an emphasis on revenue producing fixed assets.