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ABM to buy GCA
Posted on Thursday, 13 July 2017 10:05
US firm ABM Industries has inked an agreement to purchase Ohio-based janitorial facilities operator GCA Services Group from affiliates of Thomas H Lee Partners and Goldman Sachs’ merchant banking division for roughly USD 1.25 billion.
The consideration comprises USD 851.00 million in cash and USD 399.00 million-worth of shares.
Commenting on the purchase, chief executive of ABM, Scott Salmirs, noted: "This transformative and accretive acquisition will accelerate our 2020 vision by creating a broader platform upon which we can grow profitably and further distinguish ABM as an industry-focused solutions provider.”
As a result of the deal, AMB expects to generate revenue and earnings before interest, tax, depreciation and amortisation contributions of around USD 1.10 billion and USD 100.00 million, respectively, after the first full year of ownership.
GCA claims to be a leading provider of facility services in the education and commercial industries, specialising in facilities maintenance, janitorial, grounds management, vehicle and outsourced workforce services.
The group has over 37,000 employees and more than 930 clients across the higher education, corporate office buildings and manufacturing sectors, among others.
Founded in 1909, AMB is billed as a frontrunning provider of facility operations, with more than 100,000 staff across over 300 offices throughout the US and other international locations.
The company, which previously traded as American Building Maintenance Industries, is listed on the New York Stock Exchange.
In the 12 months ended 31st October 2016, AMB posted revenue of USD 5.14 billion, a 5.0 per cent increase on USD 4.90 billion in the previous year.
Operating profit totalled USD 54.70 million for the period (FY 2015: USD 73.60 million).
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 51 deals targeting facility support companies announced worldwide since the beginning of 2016.
The most valuable of these was Downer EDI Services’ AUD 1.09 billion (USD 835.15 million) agreement to buy Australian firm Spotless Group in March 2017.
Other companies include Asia Integrated Facility Solutions, Coor Service Management and Gyongbuk Green Energy.
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