UK-based Pamplona Capital Management has acquired laundry service provider Coinmach Services and automobile tire inflation business AIR-serv for a combined $1.4 billion.
Coinmach provides laundry services equipment for about 7 million individual multi-family housing properties in the US. AIR-serv provides pay air services to gas stations and convenience stores in North America.
Pamplona will combine the two companies to create CSC ServiceWorks, which will service nearly 1 million air and laundry systems in North America and Europe, according to a statement.
“With the combined company’s new and flexible capital structure, we look forward to supporting the company’s growth strategy, including future acquisitions in both the laundry and air services lines,” partner at Pamplona Robert Warden said in a statement.
The firm was unavailable for comment at press time.
The transaction includes a $795 million first lien loan and a $325 million second lien loan that was underwritten by Pamplona. In addition to its €2 billion buyout fund, Pamplona Capital Partners III, the firm manages the Pamplona Credit Opportunities Fund and a UK-focused debt fund.
Morgan Stanley acted as financial advisor to Pamplona in connection with the deal.
Pamplona’s Fund III closed in 2011 and invests in both Europe and North America. The firm was founded in 2005 with its €322 million debut buyout fund and has private equity investment professionals in London and New York.