Acosta Inc., a Jacksonville, Florida-based full-service sales and marketing agency, has successfully completed its financial reorganization and recapitalization and emerged from Chapter 11 less than a month after filing. Through the process, Acosta eliminated all of its approximately $3 billion of long-term debt, and its new investors have funded $325 million in new equity capital.
The reorganized company’s largest shareholders include funds associated with Elliott Management, Oaktree Capital Management L.P., Davidson Kempner and Nexus Capital Management. The investor group is composed of funds that manage nearly $200 billion and have made a strategic decision to capitalize the business with the new equity capital and zero funded debt.
Acosta’s new equity owners and investors recognize the long-term value the company can create for its clients and customers and share Acosta’s interest in driving the growth and value of the Acosta enterprise and brand. The company says its newly reconstituted board of directors will be comprised of Acosta’s CEO Darian Pickett, representatives from the new ownership group and other industry experts.
“We are starting this new year by launching an exciting new chapter for Acosta and our key stakeholders,” Pickett. “We are pleased that we have completed this process as quickly and efficiently as possible. We sincerely thank all of our employees, clients, customers and other business partners for their continued commitment to Acosta. We now have the strongest balance sheet in the industry. Looking ahead, our focus remains on working hard and delivering innovative advancements and industry-leading solutions in order to be the strongest possible partner for our clients and customers. As we embark into the future as a stronger Acosta, we will continue to build on our successes, while upholding our core values of integrity and trust, to better serve our clients and customers for years to come.”
Kirkland & Ellis LLP is acting as legal counsel for the company; PJT Partners Inc. as financial advisor; and Alvarez & Marsal as restructuring advisor. White & Case LLP is acting as legal counsel for certain supporting creditors. Sullivan & Cromwell LLP is acting as legal counsel for certain other supporting creditors. Arnold & Porter Kaye Scholer LLP is acting as legal counsel for a minority group of first lien lenders. Davis Polk & Wardwell LLP is acting as legal counsel for an ad hoc group of lenders and Centerview Partners is acting as financial advisor.