Dallas based Surge Private Equity (Surge) has closed its investment in Manhattan based Hippodrome Services Group (Hippodrome) with financing provided by Harvest Capital Credit Corporation (Harvest) and Modern Bank (Modern), which acted as administrative agent in the transaction.
Operating for 20-plus years, Hippodrome provides outsourced laundry and dry-cleaning services to 4- and 5-star hotels in Manhattan. With a nine-year weighted average customer tenure, Hippodrome’s customer satisfaction is unparalleled in the Manhattan market. Due to its focus on high touch service and avoidance of lower-quality tunnel washing, Hippodrome has emerged as one of NYC’s premier providers in the Hotel laundry industry.
The deal closed with a >USD10 million facility from Harvest and Modern, with seller Sam Pritsker retaining an equity stake in the business as he stays on to help expand.
Founder Sam Pritsker, says, “This is a tremendous opportunity for us, in our ability to better-service Manhattan. Surge brings the ability to modernise systems, controls, policies and procedures to further develop and refine our 24/7 customer service.”
Tom Beauchamp, Partner at Surge Private Equity, says, “Sam has built a remarkable business whose customer tenure speaks for itself. We see the value in this approach and believe we can improve the business he has built. Furthermore, this was a good fit for us given our ownership of Manhattan cleaning company Busy Bee Cleaning Services which we partnered with Harvest on as well.”
