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Angelo Gordon acquires stake in Solo Cup

The New York private equity firm has acquired a 50 percent interest in a portfolio of Solo Cup manufacturing facilities throughout the US.

Angelo, Gordon and Company has acquired a 50 percent interest in a portfolio of facilities net leased to disposable foodservice manufacturer Solo Cup Company for $65 million (€46 million).

The portfolio includes manufacturing plants in Dallas; Chicago; Urbana, Illinois; Augusta, Georgia; Conyers, Georgia; and Federalsburg, Maryland.

“This transaction demonstrates our ability to partner on large and complex ventures in difficult market environments, requiring our unique combination of credit expertise, principal real estate investment experience, and highly competitive capital structure,” Gordon Whiting, managing director and senior portfolio manager of AG Net Lease, said in a statement released by the firm.

The firm closed its AG Net Lease Realty Fund in January on $160 million in capital. The vehicle targets acquisitions of net-leased corporate real estate properties throughout the US. Including leverage, the fund could look to provide approximately $500 million worth of net lease financing to non-investment grade companies and financial sponsors.

In May of this year, the firm acquired three Sunny Delight Beverages Company bottling facilities in Anaheim, California; Dayton, New Jersey; and Atlanta, Georgia in a $58 million sale-leaseback deal. In the same month, the firm completed a net lease deal with ice-cream manufacturer and restaurant company Friendly Ice Cream Corporation for $6.4 million.

Founded in 1988, Angelo Gordon currently has $15 billion under management. In addition to its headquarters in New York, the firm also has offices in Los Angeles, Chicago, London, Hong Kong and Seoul.

Solo Cup, established in 1936, manufactures disposable foodservice products under the Solo and Sweetheart names and has facilities in the US and international markets.