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ABM INDUSTRIES BUYS GCA SERVICES GROUP

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The acquisition will increase capabilities © iStock


7 September 2017 | Herpreet Kaur Grewal


Facilities services provider ABM has completed its acquisition of GCA Services Group for £1 billion (US$1.25 billion).

 

This consists of approximately £650 million ($851.0 million) in cash and 9.5 million shares of ABM common stock from affiliates of Thomas H Lee Partners, LP and the Goldman Sachs Merchant Banking Division.

 

The cash portion of the purchase price is subject to normal adjustments for working capital and certain other items. The company previously announced the signing of a definitive agreement to acquire GCA on July 12, 2017.

 

GCA provides facilities services for the education and commercial sectors. 

 

The acquisition is expected to add about £0.84 billion ($1.1 billion) in annual revenues and adjusted EBITDA of around £76 million ($100 million).

 

The acquisition should increase the combined companies’ capabilities in the education, industrial and other key segments.

 

ABM's strategic acquisition of GCA Services Group aligns with the core principles of its 2020 Vision Strategy of achieving long-term profitable growth. 

 

GCA’s industry-focused approach is expected to complement ABM's industry-focused, client-centric organisational structure and produce cost synergies of about £15 million ($20 million) to £23 million ($30 million) by the second full year of ownership.