Fortna Strengthens Financial Foundation

Fortna, a leader in automation and software for the full logistics value chain, has entered into an agreement with holders of 74% of the company’s funded debt and the company’s sponsors that will meaningfully strengthen Fortna’s financial foundation; transition the company’s ownership to its existing lenders, including funds managed by Ares Management and some of the largest global asset managers; and position the business for long-term growth.

• Participation in the transaction contemplated by the agreement will be offered to all of the company’s existing lenders.

The company continues to operate as normal and the Fortna team remains focused on delivering for customers and advancing projects on time.

“Today’s agreement marks an important milestone for our company,” said Rob McKeel, Chief Executive Officer, Fortna.

“Following this transaction, we will have a stronger balance sheet and enhanced financial flexibility. Additionally, with the support of new ownership that shares our long-term vision, we will be well positioned to execute our strategy with discipline and confidence. Our focus remains unchanged — delivering exceptional value to our customers, investing in operational excellence and driving sustainable long-term growth.”

McKeel continued, “As we look ahead, our priorities remain clear. We will continue helping our customers optimize complex distribution and fulfillment operations with mission-critical solutions, expertise and innovative approaches. We are grateful for the continued trust and support of our customers and business partners and look forward to our continued collaboration. I also want to recognize and thank our employees for their hard work, dedication and commitment, which will continue to drive our success in the years ahead.”

Fortna is an end-to-end design-build firm, delivering transformative, data-driven distribution solutions to the world’s leading brands.

Once the transaction contemplated by the agreement is completed, the company will receive a fully committed equity cash infusion of approximately $150 million, which will be funded by certain of the company’s existing lenders, including Ares.

In addition, the transaction will deleverage the company’s balance sheet by approximately $1.8 billion, reducing annual interest expense by more than $150 million. Majority ownership will transition through the recapitalization to the company’s existing lenders.

• The company fully expects to consummate the recapitalization transaction in the coming weeks, subject to the satisfaction of standard closing conditions. The recapitalization transaction will have no impact or impairment on the company’s vendors, suppliers, and business partners.