Providence Industries has received a preferred equity investment from Alaris Royalty Corp.
Lincoln International (“Lincoln”), a leading global mid-market investment bank, announced the successful completion of a private placement financing for Providence Industries (“Providence” or the “Company”), a leading provider of design, engineering, development, manufacturing and sourcing services for apparel companies and retailers. Terms of the transaction were not disclosed.
Lincoln acted as the exclusive financial advisor to Providence, working closely with the management team and shareholders on all aspects of the transaction, including helping to structure, arrange and negotiate the financing. The financing consisted of a revolving credit facility and senior term loan provided by East West Bank (“East West”) and preferred equity provided by Alaris Royalty Corp. (AD:CA; “Alaris”).
Dan Kang, Co-Founder and CEO of Providence, stated, “With the continued outperformance of our business, combined with favorable capital-raising conditions, now was an opportune time to raise incremental growth capital and provide liquidity for our shareholders, while maintaining control and the flexibility to execute our vision for the Company.”
James Lee, Co-Founder and CFO of Providence, said, “Lincoln led a successful financing process that generated an excellent outcome for our Company, shareholders and employees. Lincoln’s access to all types of investors enabled the Company to achieve the optimal capital structure. We look forward to partnering with East West and Alaris during the next phase of the Company’s growth as we continue to provide value-added solutions to our customers and gain market share.”
Joseph Choi, Co-Founder and CPO of Providence, added, “Lincoln understood our unique position within the apparel and services industries and successfully communicated our story to both debt lenders and equity investors. The Lincoln team successfully managed the process from start to finish and was very responsive and always available.”
Providence is a leading provider of design, engineering, development, manufacturing and sourcing services for international apparel companies and retailers. The Company utilizes its extensive global network of sourcing and manufacturing partners to provide value-added sourcing excellence to customers, combined with rapid speed to market. In addition, Providence’s unique design expertise and focus on innovation enables customers to remain at the forefront of evolving fashion trends. The Company has an experienced management team with significant industry know-how, which is supported by a talented workforce of over 300 employees. Providence plans to continue to grow with current customers and add new customers that complement its current client and sourcing bases. The Company is headquartered in Long Beach, California.
About Alaris Royalty Corp
Alaris Royalty Corp (“Alaris” or the “Corporation”) forms partnerships with private companies whose owners want to maintain control of their business. The Corporation participates in the business of their private company partners through a non-control equity ownership position. Alaris does not require an exit strategy and its unique investment structure calls for returns in the form of monthly equity dividend distributions that are reset each year based on a company’s top line results. The Alaris structure is designed for private companies who wish to raise capital for partial liquidity, generational transfer, recapitalization, management buyout or growth. Alaris has invested over $850 million to date and currently has investments in 16 private company partners. Founded in 2004, Alaris is located in Calgary, Alberta, Canada.
About East West Bank
East West Bancorp, Inc. is a publicly owned company with total assets of $32.4 billion and is traded on the Nasdaq Global Select Market under the symbol “EWBC”. East West Bancorp, Inc.’s wholly owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California. East West is a premier bank focused exclusively on the U.S. and Greater China markets and operates over 130 locations worldwide. For more information on East West, visit the website at www.eastwestbank.com.
Meet our Senior Team
View More Transactions
Lincoln is pleased to announce that it has advised Ambienta SGR on the sale of Safim to DexKo
Lincoln International is pleased to announce that Rostra Vernatherm, a portfolio company of Nikel Holdings and Valencia Capital, has been sold to Vernet, a portfolio company of Stirling Square Capital Partners
Lincoln International is pleased to announce that AmeriBest Home Care, a portfolio company of Boyne Capital, has been sold to TEAM Services Group, a portfolio company of Alpine Investors
Lincoln International is pleased to announce the sale of the leading provider of specification-grade luminaires, The Luminaries Group, to Acuity Brands, Inc.