July 12, 2017 Comments Off on ABM Set to Acquire GCA Services in $1.25B Deal Views: 1032 National News, Top National

ABM Set to Acquire GCA Services in $1.25B Deal

New York-based ABM Industries Inc. is reportedly close to closing a $1.25-billion deal to acquire Ohio-based GCA Services Group. The merger would extend ABM’s janitorial and building services footprint in educational and commercial markets.

ABM expects to add roughly $1.1 billion in revenue after a year, with $600 million of that generated in the education sector. ABM provides cleaning, parking and maintenance, among other services, to CRE buildings and facilities. GCA specializes in custodial services for public schools. The combined company will have an employee base of 137,000.

The $850 million in cash and $400 million in common stock deal is expected to close by September, pending regulatory reviews. ABM will incur a $70 million charge in connection with the deal.

GCA is owned by Goldman Sachs Group Inc. and private equity firm Thomas H. Lee Partners LP.

Read more at Wall Street Journal

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