Envoy to Join BradyIFS, Adding Scale and Talent

BELL, Calif. -- BradyIFS, a distributor of foodservice and jan-san  supplies, has announced plans to merge with Envoy Solutions, expanding its reach into industrial packaging.
 
Terms of the Merger were not disclosed, but 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.

The new company will result in one of the country's most balanced providers of foodservice disposables and jan-san products. The new enterprise offers numerous benefits to customers, including geographic diversification; scale; the ability to cross-sell a broader range of product; improved exclusive branded offerings and global sourcing capabilities; a significant expansion of the distribution footprint with over 175 facilities; and additional leadership talent and depth, said BradyIFS.

"This transformational partnership will enable us to expand our market reach and further improve our collective capabilities," said Kenneth D. Sweder, chairman and CEO of BradyIFS. "Envoy Solutions is an impressive business that is highly complementary to BradyIFS. I want to welcome Envoy Solutions, Warburg Pincus, and FEMSA to BradyIFS and to thank Kelso for their continued partnership and support."

Mark M. Fisher, CEO of Envoy Solutions, said, "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. Envoy Solutions is currently a subsidiary of Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA"). The 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 of 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.

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.

For more information, go to www.bradyindustries.com, www.individualfoodservice.com or  www.envoysolutions.com.