Washing Systems, LLC (“Washing Systems” or “WSI”), a Loveland, Ohio-based leading provider of innovative chemicals and technical services to the commercial laundry processing industry, announced that it has completed a recapitalization with equity partner Gryphon Investors (“Gryphon”), a San Francisco-based private equity firm. The Washing Systems management team, including Chairman and CEO Robert Fisher and President Terry Shoreman, continues to retain a significant ownership position in the company, and will continue to lead the business, managing all day-to-day operations. The terms of the transaction were not disclosed.
Washing Systems formulates and designs critical washing chemicals and ancillary products for the leading uniform rental and linen supply companies in North America. Since its founding more than 25 years ago, the Company has established itself as a leader in the commercial laundry processing industry through continuous product innovation, high levels of service and customer support, and a move to environmentally sustainable chemicals, including being an industry leader in the move to NPE-free chemicals. Washing Systems’ long-term focus on innovation and high-touch service has led to extremely close relationships with some of America’s largest commercial laundry providers as well as many independent laundries.
Following multiple years of attractive financial performance and increased demand for its products and services, Washing Systems is well-positioned for continued strong growth based on new product introductions, investments in technical service personnel, expansion with its current customers, additional penetration into the adjacent healthcare and hospitality laundry processing markets, and selective acquisitions. The partnership with Gryphon will provide Washing Systems with significant resources to further these investments.
Mr. Fisher commented, “We are entering an exciting stage of the company’s evolution, with many opportunities to serve our existing customers even better and to expand to adjacent markets both organically and by pursuing acquisitions. We are excited to partner with Gryphon to pursue these initiatives, and we look forward to working with Gryphon to deliver even more outstanding products and service to our customers.”
Bob Grady, Partner and Head of the General Industries Group at Gryphon, said, “Washing Systems is the clear leader in its market and has a long history of innovation and extreme responsiveness to customer needs. We are excited to become partners with Bobby Fisher and his team and we look forward to working with them in continuing to strengthen Washing Systems’ position as the innovation, service, and growth leader in its industry.”
Phil Petrocelli, Operations Partner at Gryphon, added, “Gryphon has been proactively targeting the specialty chemicals area for a couple of years. We were focused on partnering with a company and a management team that was a clear leader in its niche, had strong technical service capabilities, and had a proactive product innovation effort targeted towards environmentally sustainable products. We found all of these attributes in Washing Systems along with exciting opportunities to strengthen the company further for the benefit of its customers, employees, and shareholders.”
David Andrews, Gryphon’s Founder and CEO, commented, “Washing Systems is another exciting example of Gryphon being selected by owner operators to help provide them with our capital and business-building expertise to achieve exceptional and sustainable long-term growth.”
Lincoln International acted as financial advisor to Washing Systems on the transaction. Katten Muchin Rosenman LLP acted as the legal advisor to Gryphon, and Katz Teller LLP was the legal advisor to Washing Systems.
About Washing Systems, LLC
Washing Systems (www.washingsystems.com) is a leading provider of innovative chemicals and technical services to the commercial laundry processing industry. The company is a trusted partner to many of the largest commercial laundry providers as well as many independent laundries. Customer success is Washing Systems’ primary objective, and the company thrives on delivering the most innovative and environmentally sustainable products, and reliable service to its customers. Washing Systems serves customers in the U.S., Canada, and the U.K.
About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity (“PE”) firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management. With approximately $1.8 billion of cumulative equity commitments, the firm has an extensive track record of leading equity investments of $35 million to $150 million into portfolio companies with sales ranging from approximately $50 million to $500 million. Gryphon prioritizes investment opportunities where it can form proactive partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.