PR Newswire

NEW YORK — Morgan Lewis Githens & Ahn, Inc. (MLG&A) and members of senior management of Service America Corporation (Service America), one of the nation's largest contract food service companies, announced completion of the acquisition of Service America from Alleco Inc. formerly Allegheny Beverage Corporation, for $450 million in cash and securities.

General Electric Credit Corporation (GE Credit), which initiated the transaction, provided a total of $375 million of debt and equity in the transaction. A portion of such financing was a $100 million bridge loan. The leveraged buyout fund of MLG&A, members of management of Service America, and investors in the high yield debt will provide a majority of the equity.

Headquartered in Stamford, Conn., Service America provides contract foodservice, including a full range of dining and vending services, to offices and manufacturing plants, schools and colleges and health care facilities and provides foodservice for stadiums and convention centers throughout the United States.

GE Credit's Acquisition Funding Corporation (AFC) arranges debt and equity financing for acquisitions, leveraged buyouts, divestitures, recapitalizations and corporate restructurings. Stamford-based GE Credit, with assets in excess of $30 billion, is a subsidiary of GE Financial Services.

Morgan Lewis Githens & Ahn, Inc., is an investment banking firm. Service America represents the first transaction financed by the firm's MLGA Fund I, L.P., an investment fund formed earlier this year to participate in leveraged buyouts.

CONTACT: John D. Kiker of GE Credit Corporation, 203-357-4489

© PR Newswire 1987 wire