CIT Serves as Joint Lead Arranger and Joint Bookrunner in $243 Million Acquisition Financing to GI Partners
CIT Group Inc. (NYSE:CIT) cit.com, a leading provider of commercial lending and leasing services, today announced that it served as Joint Lead Arranger in a $243 million senior secured credit facility for GI Partners, a San Francisco-based private equity firm, to acquire Kellermeyer Bergensons Services (KBS), a leading national provider of contract cleaning and related facility support services to retail and other sectors in North America.
CIT Corporate Finance served as Joint Lead Arranger and Joint Bookrunner for the transaction. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of the transaction were not disclosed.
“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.”
Eric Toizer, Managing Director of CIT Sponsor Finance, added: “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. 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.”
Hoon Cho, Managing Director at GI Partners, said: “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. 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.”
Mark Minasian, Chief Executive Officer of KBS, added: “We are very excited to be working with GI Partners, a firm that has significant experience investing in facility management services business. With GI Partners’ support and CIT as a key lending partner, KBS is well positioned to capitalize on expansion opportunities in related industry verticals and ancillary services.”
KBS was established in 2011 after the merger of Kellermeyer Building Services LLC, which was founded in 1967, and Bergensons Property Services Inc., founded in 1984. The company’s services include contract cleaning, porter services, parking lot maintenance, snow removal, landscaping, and general repairs, as well as other trade and technical services. With over 11,000 direct employees and a North American network of affiliated contractors, KBS currently serves over 300 retail and grocery customers in 14,000 customer locations in Canada and the United States, including Puerto Rico. The company is based in Oceanside, California and Maumee, Ohio.
CIT thought leadership content can be found at View from the MiddleTM (cit.com/viewfromthemiddle) and our CIT Point of View blog (cit.com/pov). View our corporate video (cit.com/corporatevideo) and follow us on Twitter, LinkedIn, YouTube, and Facebook. Register to receive press releases at cit.com/newsalerts.
Kellermeyer Bergensons Services is a leading integrated retail property services company offering interior and exterior contract cleaning, landscaping, parking lot maintenance, snow removal, and other trade and technical services on both a self-perform and vendor-managed basis for blue chip retailers and grocers in North America. The company also serves customers in the education, healthcare, and other end markets. The company offers its customers a complete outsourcing solution for all of their interior and exterior facilities services requirements. KBS operates in all 50 U.S. states, Canada, and Puerto Rico, and brings efficiency to the cleaning process through best-in-class labor management and technology. kbs-clean.com
About GI Partners
Founded in 2001, GI Partners is a leading middle market private equity investment firm based in San Francisco. The firm currently manages over $11 billion in capital commitments through private equity and real estate strategies for recognized institutional investors, including some of the largest state and sovereign pension funds in North America, Europe, Australia, Asia, and the Middle East. GI Partners is active in a number of key sectors, including TMT, Healthcare Services, Retail & Leisure, and Financial & Real Estate Services. For more information on GI Partners and its entire portfolio, please visit gipartners.com.
About CIT Corporate Finance
CIT Corporate Finance provides lending, leasing, and other financial and advisory services to the middle market with a focus on specific industries, including: Aerospace & Defense, Business Services, Communications, Energy, Entertainment, Gaming, Healthcare, Industrials, Information Services & Technology, Restaurants, Retail, Sports & Media, and Transportation. cit.com/corporatefinance
About CIT Bank
Founded in 2000, CIT Bank (Member FDIC, Equal Housing Lender) is the U.S. commercial bank subsidiary of CIT Group Inc. (NYSE:CIT) . It provides lending and leasing to the small business, middle market and transportation sectors. CIT Bank (BankOnCIT.com) offers a variety of savings options designed to help customers achieve their financial goals. As of September 30, 2014, it had more than $14 billion of deposits and more than $20 billion of assets. cit.com/CITBank
Founded in 1908, CIT (NYSE:CIT) is a financial holding company with more than $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle market lending, factoring, retail and equipment finance, as well as aerospace, equipment and rail leasing. CIT’s U.S. bank subsidiary CIT Bank (Member FDIC), BankOnCIT.com, offers a variety of savings options designed to help customers achieve their financial goals. cit.com
Sorry. No data so far.