W. P. Carey & Co. Acquires Advantis Technologies, Inc., Headquarters in Net Lease Financing Deal
Sale-Leaseback Transaction Includes Corporate Headquarters and Primary Manufacturing Operations in Georgia
Investment banking firm W. P. Carey & Co., LLC, has acquired and leased-backed the corporate headquarters of Alpharetta, Ga.-based Advantis Technologies, Inc., a leading U.S. manufacturer of branded pool, spa and surface water chemicals and pool accessories, for approximately $13.1 million. Advantis is a subsidiary of Rockwood Specialties, Inc., a leading global manufacturer and marketer of high value-added specialty inorganic chemicals and performance materials for industrial and commercial purposes.
Under the terms of the sale-leaseback agreement, the facility will be leased under a 15-year bond type net lease with two ten-year renewal options. The 192,000 square foot headquarters houses Advantis' corporate offices as well as its primary manufacturing and distribution operations. The newly built, state-of-the-art industrial facility located in Alpharetta, GA is situated 25 miles northeast of downtown Atlanta. The property was purchased on behalf of Corporate Property Associates 15 Incorporated (CPA(R):15), W. P. Carey's newest publicly held non-traded real estate investment trust (REIT) and a member of the $3.5 billion W. P. Carey Group.
"In today's tightening credit market sale-leasebacks are increasingly becoming one of the preferred methods of financing for companies seeking to grow and expand their businesses," said Gordon J. Whiting, executive director and deputy director of acquisitions at W. P. Carey. "This sale-leaseback transaction effectively turns Advantis Technologies' real estate into working capital."
"We are very pleased to have completed this sale-leaseback with W. P. Carey," said Scott G. Smith, corporate treasurer of Rockwood Specialties. "This transaction enabled us to monetize 100% of the value in a highly-appreciated real estate asset, versus more traditional mortgage-type financings, while freeing up capital to aggressively reinvest in our businesses."