News

September 15, 2010

Norwest Mezzanine Partners Invests $23.0 Million in Hospitality Staffing Solutions

Minneapolis, Minnesota – Norwest Mezzanine Partners (NMP) today announced that it invested $23.0 million in subordinated debt and preferred equity to support Frontenac Company’s investment in Hospitality Staffing Solutions (“HSS” or the “Company”), a leading national provider of outsourced staffing services to hotels. This is the second time within six months that NMP and Frontenac have partnered together on an investment opportunity.

HSS initially started 20 years ago as a third shift janitorial company serving the hospitality industry. However once established, the Company quickly recognized the need for a reliable back of house workforce, compliant with immigration, IRS, state and federal labor departments. Today, HSS is recognized as the industry leader that serves the best hotel brands in the business, including four and five-diamond properties.

“We are excited to add HSS to our portfolio and to have had the opportunity to work with and support the Frontenac team on this investment,” stated John Hogan, Partner at NMP. “Along with building long-term relationships and continually exceeding client expectations, HSS has proven to be a growth-driven company with a top quality management team under the leadership of CEO Rick Holliday.”

Founded in 1971, Frontenac Company is a Chicago-based private investment firm currently investing capital from its ninth equity fund. “NMP continues to be a strong partner for our firm and their support and flexibility was valued throughout the investment process. Frontenac was very pleased to have NMP invest in HSS,” said Troy Noard, Managing Director at Frontenac.

Through 70+ market locations in 35+ states, HSS specializes in providing personnel for housekeeping, janitorial, stewarding, laundry, food and beverage, and grounds/maintenance. For more information, please visit www.hssstaffing.com.

Norwest Equity Partners (NEP) is a leading middle market investment focused on partnering with business owners and building companies into industry leaders. With a reputation for quality investments and exceptional financial returns since 1961, NEP manages nearly $5 billion of capital through a series of equity and mezzanine funds. Offering creative and flexible transaction solutions through management buyouts, recapitalizations and growth financings, NEP seeks $30-$150 million equity investment opportunities for growing and profitable companies within the agriculture, applied technology, business services, consumer products and services, distribution, healthcare and industrial industry sectors. NEP is headquartered in Minneapolis, Minnesota; please visit nep.com for more information.