(Reuters) – Private equity firm Carlyle Group Inc said on Thursday it has completed a $95 million financing package for Zippy Shell Inc, one of the largest moving-and-storage service providers in the United States.
Washington, D.C.-based Carlyle said its financing package consists of a $75 million second-lien term loan and $20 million in preferred equity.
Zippy Shell, which has a network of more than 71 warehouse facilities across the country, is owned by buyout firm Virgo Investment Group LLC. The Wake Forest, North Carolina-based company was founded in 2009 and merged with 1-800-PACK-RAT, another moving firm, in 2018.
The company plans to use the financing to make acquisitions, open more storage locations across cities, invest in its technology, and expand its fleet of trucks and moving containers, Zippy Shell Chief Executive Officer Mark Kuhns said.
Carlyle provided the financing for Zippy Shell from its $2.4 billion Credit Opportunities Fund, which was recently used to back International Creative Management Partners, one of the most prominent Hollywood talent agencies, in its recent acquisition of London-based sports management agency Stellar Group. (Link here here).
The private equity firm has $53 billion in credit assets under management.
Reporting by Chibuike Oguh in New York, Editing by Sherry Jacob-Phillips