New Mountain Capital Executes $300 Million in U.S. Net Lease Transactions in Second Half of 2021

NEW YORK, Jan. 12, 2022 /PRNewswire/ -- New Mountain Capital L.L.C., a defensive growth-oriented investment firm that manages more than $35 billion across private equity, credit, and net lease real estate, today announced that its net lease business comprised of New Mountain Net Lease Partners and New Mountain Net Lease Corporation (together, "New Mountain Net Lease"), has closed eight transactions in the second half of 2021. These transactions had a total acquisition value of $300 million and covered approximately 4 million square feet of industrial real estate.

These investments include:

• The sale-leaseback of three manufacturing facilities in Portland, San Jose and Seattle leased to Boyd Corporation, a portfolio company of Goldman Sachs' Merchant Banking Division. Boyd is a global provider of highly engineered, specialty material enabled thermal management and environmental sealing solutions.
• A sale-leaseback of a four-property manufacturing and distribution portfolio totaling 976,000 square feet, net leased to a "Top 10" manufacturer of flexible packaging solutions in North America.
• The sale-leaseback of four manufacturing facilities located in Florida and Alabama leased to ICP Group, one of the largest privately held coatings, adhesives and sealants companies in North America. ICP Group was established in 2015 through the merger of Nicoat and California Products Corporation and is currently owned by Audax.
• A sale-leaseback of a three-facility manufacturing portfolio totaling 861,000 square feet, leased to Voyant Beauty, a portfolio company of Wind Point Partners. Voyant is a "Top 3" contract manufacturer of beauty and personal care products in North America.
• The sale-leaseback of twenty-four last mile warehouse and distribution facilities leased to Wittichen Supply, a portfolio company of Gryphon Investors. Founded in 1914, Wittichen Supply is a market-leading wholesale distributor of heating, ventilation, air conditioning and refrigeration (HVAC/R) equipment, parts and supplies.
• The sale-leaseback of BOX Partners' corporate HQ and primary distribution center located in Elgin, IL. BOX Partners, a Charlesbank portfolio company, is a "Top 3" wholesaler of packaging, shipping, and industrial supplies for distributors and e-commerce platforms across North America.
• The sale-leaseback of four manufacturing facilities located in Illinois, Ohio and Rhode Island leased to Rohrer, a portfolio company of Wellspring Capital. Rohrer is a leading North American manufacturer of high-visibility packaging solutions with a product portfolio inclusive of blister cards, clamshell packaging, folding cartons and displays.
• The acquisition of SunOpta's newly renovated Global Headquarters located in Eden Prairie, MN. SunOpta is the leading North American manufacturer of plant-based and fruit-based food and beverage products with a focus on alternative milk production.

Teddy Kaplan, Managing Director and Head of New Mountain Net Lease, said, "The second half of 2021 saw us continue to build on our considerable momentum and further grow our net lease business. This robust level of activity was driven by our ability to draw upon the industry and investing expertise of the full New Mountain platform to deliver bespoke, efficient financing solutions for property owners across defensive growth sectors. The differentiated level of analytical depth that we bring to net lease transactions has made us a partner of choice for leading sponsors and non-investment grade companies and enables us to deliver attractive investment opportunities for our investors. Following a strong 2021, we are excited for the year ahead as we continue to see a high level of attractive investment opportunities to support our valued partners and deploy capital on behalf of our clients."

Steve Klinsky, Founder and CEO of New Mountain Capital added, "We are proud of the strong pace of investment in 2021 and the continued success of the net lease strategy.  We have continued to grow the New Mountain team overall, adding almost 40 professionals over the last 12 months, including continuing to add to the net lease team." 

New Mountain's Net Lease closed fourteen transactions in total during 2021. These transactions had a total acquisition value of $588 million and covered approximately 6 million square feet of industrial and life science real estate.

About New Mountain Net Lease
New Mountain Net Lease, which includes New Mountain Net Lease Partners and New Mountain Net Lease Corporation, subsidiaries of New Mountain Capital, L.L.C. ("New Mountain"), a New York-based investment firm with over $35 billion in assets under management, has been investing in operationally critical, triple net, industrial and life science real estate since 2016. The platform has completed over 30 transactions representing approximately 14 million square feet and more than $1.3 billion in acquisition value as of [December 31, 2021]. New Mountain Net Lease employs a defensive core-plus real estate strategy focused on US and Canadian assets primarily leased to sponsor-backed non-investment grade tenants in industries in which New Mountain has deep expertise.

Additional information about New Mountain Net Lease is available at www.newmountaincapital.com. 

Contacts

Prosek Partners
Josh Clarkson / Spencer Tait
[email protected] / [email protected]

SOURCE New Mountain Capital