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Angelica Corporation Completes Sale to KKR

ALPHARETTA, Ga., — Angelica Corporation, the leader in healthcare linen and medical laundry services, today announced the completion of the sale of substantially all of its and its subsidiaries’ assets as a going concern to KKR.

 
Under KKR’s ownership, the business is moving forward with the Angelica name and will continue to be the leading provider of linen services to the healthcare industry, serving more than 3,800 hospitals, clinics, and long-term care facilities across the country.

 
In connection with the closing of the transaction, Cary B. Wood has been named Angelica’s President and Chief Executive Officer, effective immediately. Mr. Wood, who succeeds David A. Van Vliet, has over 20 years of experience improving operations, enhancing customer relationships, and optimizing overall financial strength while prudently deploying capital to improve both top- and bottom-line results.

 
“I am pleased to be part of the next chapter in Angelica’s storied 139-year history and look forward to working with the company’s dedicated employees to drive growth and success,” Mr. Wood said. “Partnering with KKR as our long-term investor, we will focus on quickly strengthening Angelica’s operations and finances while continuing to grow our customer base by providing our AngelTrakĀ® RFID linen management system to customers who elect to use this industry-leading technologically-based approach that provides optimized and efficient linen services. Our top priority is ensuring we continue to deliver exceptional service to our customers. Looking ahead, we are focused on driving profitability, increasing operational efficiencies, implementing best practices, and improving our organizational effectiveness.”

 
Rony Ma, Principal on KKR’s Credit team, said, “We are enthusiastic about Angelica’s future prospects and are excited to have Cary leading the company as President and CEO. With a stronger financial foundation and the full support of KKR, Angelica is poised to build on its position as an industry leader with a national footprint and long-term partnerships with key customers. Cary’s significant experience and strong track record give us confidence that he is the right person to lead Angelica through its next phase of growth. We look forward to working closely with Cary and the Angelica team to leverage the company’s pioneering technology solutions and best-in-class service.”

 
KKR is primarily making the investment through funds affiliated with its Direct Lending strategy.

 
Weil, Gotshal & Manges LLP served as legal counsel to Angelica, Alvarez & Marsal served as restructuring advisor and Houlihan Lokey, Inc. served as investment banker and financial advisor.

 
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to KKR along with Jones Day which served as KKR’s counsel on labor and benefits matters.

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