The Carlyle Group Provides $95 Million in Transitional Growth Capital for Containerized Moving and Storage Company Zippy Shell
Financing Package Includes $75 Million Second Lien Term Loan and $20 Million Preferred Equity
NEW YORK and WAKE FOREST, NC. – The Carlyle Group Inc. (NASDAQ: CG) today announced that its Global Credit platform provided $95 million in transitional growth capital for Wake Forest, North Carolina-based Zippy Shell, one of the largest containerized moving and storage companies in the United States. The financing package includes a $75 million second lien term loan and $20 million in preferred equity. Zippy Shell plans to use the funds for growth initiatives and strategic acquisitions.
Alex Popov, Carlyle’s Co-Head of Illiquid Credit Strategies and Head of Carlyle’s Credit Opportunities team, said, “Zippy Shell and its subsidiary 1-800-PACK-RAT are strongly positioned for expansion in the moving and storage industry and we are pleased to provide the capital it needs to grow its fleet, enter new markets and fund acquisitions. Drawing on insights from our global investment platform, we were able to move quickly to identify and diligence the deal and provide a customized financing solution for the team.”
Mark Kuhns, Zippy Shell’s Chief Executive Officer, said, “Carlyle’s ability to see the growth potential of our business showed that they are more than just a financial partner, they are a business partner whom we’re confident will help us successfully scale our business. By providing equity in addition to debt, they have demonstrated their confidence in our team and we look forward to working with Carlyle as we meet increasing needs for simple, convenient moving and storage solutions across the country.”
Zippy Shell, founded in 2009, merged with 1-800-PACK-RAT in mid-2018 creating a national network of over 71 warehouse facilities, reaching a total addressable domestic market of 240 million consumers. The company provides an alternative to traditional temporary storage and moving options by delivering containers that are dropped off directly at a customer’s location, filled with their belongings on their schedule and then stored at a drop-off site and/or at a company location, or moved to the destination for unloading by the consumer. Zippy Shell has seen steady growth in demand for its services, in particular long-distance moves and local storage, since its combination with 1-800-PACK-RAT in 2018. 1-800-PACK-RAT was founded in 2002 in North Carolina and has seen impressive growth throughout the years in both residential and commercial markets.
Carlyle’s $53 billion Global Credit segment made the investment with capital primarily from its Credit Opportunities Fund, a $2.4 billion fund that closed last year. The Credit Opportunities Fund invests in privately negotiated capital solutions primarily for upper middle market borrowers, including both private equity sponsored and family or entrepreneur-owned companies. The Credit Opportunities Fund seeks to benefit from proprietary investment opportunities originating from within Carlyle and the firm’s global resources and operating expertise.
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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $230 billion of assets under management as of September 30, 2020, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,800 people in 30 offices across six continents. Further information is available at www.carlyle.com. Follow The Carlyle Group on Twitter @OneCarlyle.
Carlyle’s $53 billion credit investment platform provides financing solutions that span the credit spectrum: liquid credit, illiquid credit and real assets credit. Since 1999, the group has provided creative solutions for borrowers and delivered attractive risk-adjusted returns for investors by drawing on the deep credit expertise and disciplined underwriting capabilities of our over 150 investment professionals and by leveraging the resources and industry expertise of Carlyle’s global network.
About Zippy Shell
Zippy Shell, founded in 2009, merged with 1-800-PACK-RAT in mid-2018. Their services include local and long-distance moving, mobile storage, on-site storage, and loading/unloading and packing referrals. Zippy Shell and 1-800-PACK-RAT's moving and storage solutions combine the benefits of traditional moving services with the security and convenience of containerized solutions while their innovative equipment design and flexible service options are delivering on their commitment to make moving and storage simple for both residential and commercial customers. To learn more about their services, visit https://www.zippyshell.com/ or https://www.1800packrat.com.
The Carlyle Group
Zippy Shell / 1-800-PACK-RAT