BradyIFS Welcomes Envoy Solutions

GLENVIEW, Ill., and BELL, Calif., Aug. 29, 2023 /PRNewswire/ -- BradyIFS, a distributor of foodservice disposables and janitorial and sanitation ("JanSan") products, and Envoy Solutions, a provider of JanSan products, foodservice disposables, industrial packaging, and marketing execution, jointly announce the two companies plan to merge (the "Merger"). Terms of the Merger were not disclosed.

The combination of BradyIFS and Envoy Solutions will result in one of the country's most balanced providers of foodservice disposables and JanSan products and will expand BradyIFS' reach into industrial packaging. The combined enterprise provides numerous benefits, including: further end market and geographic diversification; additional scale; the ability to cross-sell a broader range of highly complementary product portfolios to customers; improved exclusive branded product offerings and global sourcing capabilities; a significant expansion of the distribution footprint with over 175 facilities; and additional leadership talent and depth.

"This transformational partnership will enable us to expand our market reach and further improve our collective capabilities," commented Kenneth D. Sweder, Chairman and Chief Executive Officer of BradyIFS. "Envoy Solutions is an impressive business that is highly complementary to BradyIFS. As important, it has great leadership. Mark Fisher and his team are first-class, and we are fortunate to partner with their incredible team of associates. Our two companies are like-minded as we share similar values, culture, and a passion for delivering the best to our customers. Combining our companies to become one will unlock tremendous value and benefit our teams, our customers, and our suppliers. I want to welcome Envoy Solutions, Warburg Pincus, and FEMSA to BradyIFS and to thank Kelso for their continued partnership and support."

"I'm excited to partner with BradyIFS," said Mark M. Fisher, Chief Executive Officer of Envoy Solutions. "I look forward to working with Ken and his team to accelerate our growth by combining our resources and expertise, enhancing our value proposition, and deploying even more capital in support of growth. This partnership honors and enhances Envoy Solutions and provides exciting opportunities for our entire team."

BradyIFS is a portfolio company of Kelso & Company and its affiliate funds ("Kelso"), and Envoy Solutions is currently a subsidiary of Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA"). This Merger introduces a new strategic and financial partnership with Warburg Pincus LLC and its affiliate funds ("Warburg Pincus"), a leading global private equity firm focused on growth investing. Upon closing the Merger, Kelso, Warburg Pincus, and BradyIFS management will collectively become majority owners in the combined business and control the board. FEMSA will maintain a significant minority share in the combined business with representation on the board. The Merger is expected to close in the coming months, subject to regulatory approval and customary closing conditions. Until then, the two companies will continue to operate independently.

Harris Williams and Goldman Sachs & Co. are serving as financial advisors, E&Y is serving as accounting advisor, and Debevoise & Plimpton LLP is serving as legal advisor to BradyIFS and Kelso. Allen & Company LLC is serving as financial advisor, BDO USA, P.A. is serving as accounting advisor, and Cleary Gottlieb Steen & Hamilton LLP is serving as legal advisor to Envoy Solutions and FEMSA. PwC is serving as accounting advisor, and Kirland & Ellis LLP is serving as legal advisor to Warburg.

About BradyIFS
With headquarters in Bell, CA, and Las Vegas, NV, BradyIFS is a leading foodservice and JanSan platform in North America. The company sources, manages, and distributes a broad range of products to thousands of customers in segments including education, healthcare, hospitality, restaurants, building services, and more. For more information, please visit www.bradyindustries.com and www.individualfoodservice.com.

About Envoy Solutions
Glenview, Ill.-based Envoy Solutions is a specialized distributor and solution provider serving the U.S. market through a family of regional distributors. The company specializes in JanSan, foodservice, packaging, and marketing execution. Envoy Solutions offers a broad catalog of top brands and products, along with deep expertise and advice, to help their client-partners succeed. The company is driven to make facilities cleaner and more sustainable, people safer, and operations more productive every day. For more information, please visit www.envoysolutions.com.

About Kelso
Kelso is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has raised a total of 11 private equity funds and invested approximately $19 billion of equity capital in more than 140 companies. Kelso was founded by the inventor of the Employee Stock Ownership Plan (ESOP) and, as a result, the principles of partnership and alignment of interest serve as the foundation of the firm's investment philosophy. Kelso benefits from a successful investment track record, deep sector expertise, a long-tenured investing team, and a reputation as a preferred partner to management teams and corporates. Kelso has significant experience investing in distribution/packaging, having deployed approximately $1.4 billion of equity capital in the sector since 2015. For more information, please visit www.kelso.com.

About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm has more than $83 billion in assets under management. The firm's active portfolio of more than 250 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 21 private equity and 2 real estate funds, which have invested more than $112 billion in over 1,000 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com.

SOURCE Envoy Solutions