ABM INDUSTRIES INC /DE/ acquires GCA Services Group

ABM INDUSTRIES INC /DE/ acquired GCA Services Group for approximately $1.25 billion in cash and stock, a transaction completed in September 2017, structured as cash and stock. The deal was a merger.

GCA Services Group operates in Education & commercial facility services, is based in Cleveland, Ohio (46 states, D.C., Puerto Rico), had revenue of about approximately $1.1 billion annual revenue; approximately $100 million adjusted EBITDA. GCA Services Group, headquartered in Cleveland, Ohio, was a leading provider of facility services in the education and commercial industries, specializing in facilities maintenance, janitorial services, grounds management, vehicle services and outsourced workforce solutions, with over 37,000 employees across 46 states, the District of Columbia, and Puerto Rico. ABM acquired GCA from affiliates of Thomas H. Lee Partners, L.P. and Goldman Sachs Merchant Banking Division for approximately $1.25 billion in cash and stock; the deal was announced July 12, 2017 and closed September 1, 2017. It was the largest acquisition in ABM's history.

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.

Complementary industry-focused structure that deepens ABM's presence in the Education market and Commercial industry, with estimated cost synergies of approximately $20 million to $30 million and an improved overall margin profile. Estimated cost synergies of approximately $20 million to $30 million ABM industry groups (Education and Commercial) Scott Salmirs, FY2018 Q1 call: "Today, I'm particularly happy because these results now reflect our new operating segments as ABM and GCA are now fully combined. It represents the culmination of a great deal of work to get all of this organized and stood up both operationally and administratively."