CIT Leads $243 Million Financing for GI’s Buy
Search
Share on twitter
Share on linkedin
Share on print
Share on email

CIT Leads $243 Million Financing for GI’s Buy

CIT nf1CIT Group served as Joint Lead Arranger on a $243 million senior secured credit facility to support the acquisition of Kellermeyer Bergensons Services (KBS), a provider of contract cleaning services, by GI Partners. KBS was a portfolio company of Kohlberg & Company.

tom hobbis nf1“We’re pleased to finance GI Partners’ acquisition of KBS, a company that has experienced uninterrupted growth over the last seven years,” said Tom Hobbis, Co-Head and Managing Director of CIT Sponsor Finance. “GI Partners realized the future growth potential of KBS, which serves as a leader in the retail-focused contract cleaning business.”

KBS was established in 2011 after the merger of Kellermeyer Building Services, which was founded in 1967, and Bergensons Property Services, founded in 1984. The company’s services include contract cleaning, porter services, parking lot maintenance, snow removal, landscaping, general repairs, and other trade and technical services.  The company serves the retail and grocery markets as well as education and healthcare.  KBS has over 300 customers in more than 15,000 customer locations in the United States, Canada, and Puerto Rico. The company has approximately 11,000 direct employees and also has a network of affiliated contractors.  KBS has headquarters in Oceanside, CA and Maumee, OH (www.kbs-clean.com).

GI Partners has previous experience in the facilities management services sector through its investment in The Linc Group, a provider of infrastructure and maintenance services, which was acquired by ABM Industries in 2010.

Eric Toizer nf2“We’ve had a longstanding relationship with the GI Partners team, and we are pleased to provide financing support for this new platform investment. KBS enjoys a high retention rate with its customers,” said Eric Toizer, Managing Director of CIT Sponsor Finance.  “Through the added support of a proven sponsor like GI Partners, KBS can further expand with ancillary services, such as landscaping and parking lot management, in both the retail sector and new markets.”

GI Partners invests from $50 million to $250 million in companies with enterprise values of $100 million to $750 million.  Sectors of interest include IT infrastructure & services; healthcare services; leisure & retail; and financial & real estate services.  Since founding, GI has managed $10 billion across four private equity funds and invested in 38 platform investments. The firm is based in Menlo Park (www.gipartners.com).

hoon cho nf2“KBS is the market leader in the highly-fragmented outsourced facilities services sector, with an estimated market share that significantly exceeds that of its next largest competitor. It’s a highly attractive company with a national scale, a broad suite of services, and a suite of technology-enabled offerings. With a track record of steady growth and a management team with significant experience and expertise, we’re pleased we can provide additional support to build on the company’s success,” said Hoon Cho, Managing Director at GI Partners.  “Through CIT’s sector expertise and understanding of the market, we were able to close this transaction smoothly and efficiently. We look forward to working with CIT on additional financings in the future.”

CIT Corporate Finance provides lending, leasing and other financial and advisory services to the small business and middle market sectors with a focus on specific industries, including: chemicals, commercial real estate, communications, energy, entertainment, gaming, healthcare, industrials, information services & technology, restaurants, retail, and sports & media (www.cit.com/corporatefinance). The corporate finance group is part of CIT, a bank holding company with more than $35 billion in assets. CIT was founded in 1908 and is based in New York (www.cit.com).

2014 PEPD • Private Equity’s Leading News Magazine • 12-18-14

Share on twitter
Share on linkedin
Share on print
Share on email

To search in site, type your keyword and hit enter