Blackstone to Acquire GCA Services Group
Cleveland, Oh., September 5, 2012 – GCA Services Group, Inc. and Blackstone (NYSE: BX) today announced a definitive agreement under which a fund managed by Blackstone on behalf of its private equity investors, Blackstone Capital Partners V, L.P. (collectively with its affiliates, “Blackstone”), will acquire GCA Services Group, a leading facility services company in the U.S., from Nautic Partners, L.L.C. and other minority shareholders.
Robert Norton, Chairman, President and CEO of GCA Services Group said, “This transaction is a tremendous opportunity to fuel our continued growth. We have transformed ourselves into one of the country’s leading facility services companies in a few short years and our new relationship with Blackstone demonstrates our management-led commitment to continued dynamic growth which will energize our investment in our people and our dedication to the highest quality service to our customers.”
Peter Wallace, Senior Managing Director with Blackstone said, “Blackstone sees tremendous opportunity for investing in leading companies within the business services sector, where we have significant expertise. Blackstone is attracted to GCA’s leading market position and rapid organic growth. We look forward to working with GCA’s outstanding management team to continue to invest in the company’s growth.”
Bernie Buonanno, Managing Director at Nautic Partners said, “We are excited about the proposed transaction and the value it brings to a franchise that has been built by an outstanding management team. We believe Blackstone will be an excellent partner for GCA as the company extends its impressive track record of growth.”
The transaction is expected to close in October subject to certain government approvals and other customary closing conditions.
Credit Suisse and Morgan Stanley acted as M&A advisors to Blackstone and are providing financing for the transaction. Simpson Thacher & Bartlett L.L.P. acted as legal counsel to Blackstone.
Robert W. Baird & Co. acted as lead financial advisor to GCA and Jefferies co-advised the company. Calfee, Halter & Griswold L.L.P. acted as legal counsel to GCA.
About GCA Services Group
GCA Services Group, Inc. is among the largest facility services companies in the U.S., providing customized janitorial/custodial, facilities operations and maintenance, grounds management, diversified staffing, and other ancillary services to customers throughout the U.S. and Puerto Rico. GCA specializes in providing facility services to educational institutions (both K-12 schools as well as colleges and universities) and in select niche commercial segments that have strong growth prospects. GCA serves approximately a quarter of Fortune 100 companies and employs over 30,000 people. GCA was founded in 2003 and is headquartered in Cleveland, Ohio. For more information, visit http://www.gcaservices.com/.
About Blackstone
Blackstone (NYSE:BX) is one of the world’s leading investment and advisory firms. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies they invest in, the companies they advise and the broader global economy. Blackstone does this through the commitment of their extraordinary people and flexible capital. Their alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-oriented funds and closed-end mutual funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.blackstone.com.
About Nautic Partners
Founded in 1986, Nautic Partners is a middle-market private equity firm with over $2.5 billion of equity capital under management. The firm has completed over 110 transactions in partnership with management and delivered successful results to investors over three decades. Nautic targets equity investments of $25-$75 million, representing majority ownership in niche businesses with strong market share and growth potential, identified value enhancement opportunities and strong management teams. Areas of focus include business services, manufacturing, and healthcare. For more information, please visit www.nautic.com.
Blackstone Contact:
Media
Christine Anderson
Tel: +1-212-583-5263
E-mail: [email protected]
Nautic Partners Contact:
Media
Phil Nunes
BackBay Communications
Tel: +1-617-556-9982; ext. 227
E-mail: [email protected]