Information on the target
Armory Securities, LLC is pleased to announce the successful closing of a $30 million sale-leaseback transaction for Everde Growers (TYFCO, LLC), focusing on their Southeast facilities located in Texas and Florida. Everde Growers is recognized as one of the leading horticultural producers in the United States, specializing in a diverse array of shade trees, shrubs, and ornamental plants. Headquartered in Houston, Texas, the Company operates a comprehensive network of 14 farms that span over 6,700 acres across multiple states, including Texas, Florida, California, and Oregon.
With an impressive production capacity of over 33 million plants annually and a portfolio of 5,000 unique plant selections, Everde Growers serves a wide range of customers, including major retail outlets, landscape contractors, and re-wholesalers. The strategic sale-leaseback transaction was executed to enhance the Company's financial position by addressing existing debt obligations and optimizing its capital structure.
Industry overview in the target’s specific country
The horticultural industry in the United States has experienced significant growth, driven by increasing consumer demand for landscaping and gardening products. As urbanization continues to rise, more homeowners and businesses are investing in outdoor aesthetics, leading to a robust market for ornamental plants and trees. The industry is characterized by a diverse range of producers, from small nurseries to large-scale operations like Everde Growers, which cater to both retail and wholesale markets.
In recent years, sustainability has become a key focus within the horticultural sector, with consumers increasingly seeking eco-friendly products. This trend has prompted producers to adopt sustainable growing practices and develop plant varieties that require less water and maintenance. As a result, companies that prioritize sustainability are likely to gain a competitive edge in the marketplace.
Moreover, the horticultural industry benefits from technological advancements that enhance production efficiency and product quality. Innovations in greenhouse technology, automated growing systems, and advanced breeding techniques are helping producers meet the growing demand while maintaining profitability. The favorable regulatory environment and support for agricultural initiatives further bolster the industry's growth prospects.
The rationale behind the deal The $30 million sale-leaseback transaction was strategically structured to address Everde Growers' existing financial obligations, including a $20 million Real Estate Bridge Loan. By executing this deal, the Company was able to …