Coyne International Enterprises Corp.
Coyne International Enterprises Corp. (“Coyne” or the “Company”) operated for more than 80 years and grew to one of the largest privately owned industrial laundry companies in the United States. The large majority of the Company’s recurring route-based revenue is derived from its garment rental business. The Company offers an extensive portfolio of products and services: Coyne rents, leases, sells, and launders textile products including workplace uniforms, career apparel, protective garments, shop towels, reusable absorbent socks and pads, floor mats, treated dust mops and wet mops. The Company also provides linens, mats, towels, and restroom hygiene products including restroom towels, sanitizers, deodorizers, and soaps.
In 2013, Coyne experienced a decline in revenue and profitability due to the loss of certain key customers. In response, management implemented personnel and operational initiatives focused on increasing revenue, reducing costs and improving efficiencies throughout the organization and subsequently retained SSG to evaluate strategic alternatives.
SSG conducted a comprehensive marketing process which resulted in a wide range of interest from potential strategic and financial parties. The process resulted in eight qualified bids for the assets in whole and/or in parts. To best maximize value, SSG and Coyne’s professionals selected four buyers to form a combined bid for substantially all of Coyne’s assets. Cintas Corporation purchased the routes and certain other assets associated with the Company’s Bristol, TN; Buffalo, NY; Cleveland, OH; London, KY; Syracuse, NY and York, PA locations. Clean Rentals, Inc., purchased the routes of the Company’s New Bedford, MA location. Prudential Overall Supply, Inc., purchased the routes and real estate of the Company’s Richmond, VA location in addition to the routes of the Greenville, SC location. Pendera Holdings, LLC purchased the real estate of the Buffalo, NY location. SSG’s experience in identifying buyers and running a thorough sale process created a competitive auction environment and yielded final bids in excess of the stalking horse bids. The value created by the auction maximized recovery for key stakeholders.