A group formed by Caymus Equity, LLC, including Caymus Equity HS Investment Partners LLC, LJC Investments I, LLC, Littlejohn Opportunities Master Fund, L.P., SG Distressed Fund, L.P. and management, has completed the acquisition of HS Solutions Corporation, the holding company of Hospitality Staffing Solutions, LLC (“HSS” or the “Company”). Headquartered in Atlanta, GA, HSS is the nation’s largest provider of full service outsourced staffing solutions to the hotel, lodging, and gaming industries.
Founded in 1990, HSS’s full service offering includes housekeeping, food and beverage, janitorial, stewarding, laundry, and grounds maintenance staffing for commercial hospitality locations in over 35 states in the U.S. Caymus Equity has had a long-standing relationship with HSS since Caymus Partners LLC, the investment banking predecessor to Caymus Equity, advised the Company in three separate transactions, including the sale of the Company to an institutional investor in 2010. Post-transaction initiatives, including a significant increase in the corporate office and turnover in the field supervisor team, contributed to cash flow difficulties for the Company and ultimately led HSS to default on its loans in the spring of 2013. Because of the strong relationship with the management team and in-depth knowledge of the Company, Caymus Equity teamed with the management team and initiated the restructuring transaction. Shortly thereafter, Caymus Equity, in partnership with Littlejohn, formulated and executed the planned acquisition of the assets of HSS. The acquisition provides HSS with the necessary capital and strategic support to emerge from the transaction as a stronger company with a revitalized operating model.
“While this transaction was unique for us, we are excited about the opportunity to work alongside a management team of HSS that we have had a longstanding relationship with, as well as the opportunity to invest and work side-by-side with one of the premier distressed securities investors – Littlejohn & Co.,” said Geoffrey Faux, a managing partner with Caymus Equity. “We believe HSS’s market leadership in its service offerings and reputation, combined with the vision and strategic support from Caymus Equity and Littlejohn allow for a significant opportunity for the Company to return to and surpass previous operating benchmarks. We have known Angus Littlejohn for a long time and are delighted to have the opportunity to work with him on this exciting opportunity.”