Target Company Overview

Resilience Capital Partners has acquired the direct sale business of G&K Services, Inc. through its newly established platform, Affinity Specialty Apparel, Inc. Affinity has distinguished itself as a leader in the design, marketing, and distribution of occupational apparel and services. The company specializes in providing both customized and off-the-shelf apparel collections to clients via managed direct purchase uniform programs. This acquisition marks Resilience Capital's first entry into the corporate uniform industry and stands as its seventh platform investment under The Resilience Fund III, L.P.

Bassem Mansour, Co-CEO of Resilience Capital Partners, expressed enthusiasm about this new venture, noting the significant opportunities in the direct sales segment of the corporate uniform industry. He believes that acquiring Affinity provides a strong foundation for building a leading company in this sector.

Industry Overview

The corporate uniform industry in the United States has shown robust growth, driven by the increasing demand for branded and functional workwear across various sectors, including healthcare, manufacturing, and hospitality. As companies aim to enhance their brand image and employee cohesion, the need for comprehensive uniform programs has never been higher.

Moreover, advancements in fabric technology and the increasing emphasis on workplace safety have compelled many organizations to prioritize high-quality, durable uniform apparel. The industry's shift toward customized solutions, which cater to specific client needs, has also led to an expansion in service offerings, reflecting a move towards greater personalization in corporate uniform programs.

The growth potential in the corporate uniform sector is further supported by a burgeoning service industry that relies heavily on standardized uniforms. As organizations become more aware of the importance of employee appearance in conveying professionalism and brand representation, the demand for reliable uniform suppliers is anticipated to increase.

This landscape not only presents a favorable market for established players like Affinity but also opens the door for new entrants who can innovate and meet evolving client expectations. Thus, there is a substantial opportunity for investment and growth within this dynamic industry.

Rationale Behind the Deal

The rationale for Resilience Capital Partners’ acquisition of Affinity Specialty Apparel is rooted in the strategic intent to capitalize on the growth potential of the corporate uniform sector. By establishing this new platform, Resilience aims to leverage its operational expertise and resources to enhance Affinity's market presence and overall efficiency.

Additionally, with a dedicated leadership team led by Michael DiMino, who has a robust background in the uniform business, the company is well-positioned to execute its growth strategy effectively. This partnership is expected to elevate Affinity's capabilities, delivering superior customer service and product offerings in a competitive market.

Investor Profile

Resilience Capital Partners, headquartered in Cleveland, Ohio, is a private equity firm that specializes in acquiring niche-oriented manufacturing and service companies within the Midwestern and Mid-Atlantic regions of the United States. With a focus on companies generating revenues between $25 million and $250 million, Resilience seeks opportunities where it can optimize operations and enhance profitability.

Since its inception in 2001, the firm has successfully invested in 35 companies across 21 platforms. Currently, Resilience manages over $320 million for a diverse global investor base comprising pension funds, insurance companies, and family offices, among others, demonstrating its credibility and expertise in the private equity landscape.

View of Dealert

From an analytical perspective, the acquisition of Affinity Specialty Apparel by Resilience Capital Partners appears to be a well-timed and strategic investment, given the promising outlook of the corporate uniform industry. With the increasing demand for customized uniform solutions, Resilience's entrance into this market positions it to capture significant growth potential going forward.

The expertise and leadership of Michael DiMino, paired with the resources of Resilience Capital, are likely to facilitate Affinity's expansion efforts and enhance operational efficiencies. His established track record in the uniform sector adds an extra layer of confidence that the company can navigate challenges and seize opportunities effectively.

Moreover, with the current market trends indicating a shift towards high-quality, personalized uniform offerings, Affinity is set to benefit from the emerging consumer preferences. As businesses increasingly prioritize the visual representation of their brand through uniforms, Affinity's strategic offerings will likely resonate well with a broad client base.

Overall, this acquisition is indicative of Resilience's confidence in the growth trajectory of the corporate uniform industry, making it a potentially lucrative investment for the firm as well as a valuable addition to its portfolio.

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