On Wednesday, Blackstone Capital Partners V, L.P − a private
equity fund managed by
The Blackstone Group LP
) − announced that it will acquire GCA Services Group from Nautic
Partners, L.L.C. and other minor shareholders. The deal,
anticipated to be completed in October this year, is subject to
certain approvals by the government and other specific closing
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Headquartered in Cleveland, Ohio, GCA provides quality facility
services in the U.S.
In addition to financing the deal,
Credit Suisse Group
) played the role of merger and acquisition advisors to Blackstone.
The legal counsel of the deal was Simpson Thacher & Bartlett
Robert W. Baird & Co. was the primary financial advisor to GCA,
Jefferies Group, Inc.
) was the co-advisor. Legal counsel to GCA was Calfee, Halter &
Blackstone anticipates the deal to offer a remarkable prospect of
investing in one of the leading firms in the business services
segment, where the company has considerable proficiency. Further,
GCA's attractive market position and brisk growth offers an added
incentive. Blackstone is anticipating working with the exceptional
management of GCA to carry on investing in the latter's growth.
Further, Robert Norton - the Chairman, President and CEO of GCA -
stated that the deal offers a very good prospect to stimulate its
gradual growth. The deal with Blackstone reflects the GCA's
sustained dedication to grow dynamically, which will lead to
enhanced service quality to the consumers. Moreover, Nautic
Partners consider the Blackstone-GCA partnership to be an excellent
collaboration, since the former has a remarkable growth history and
is further seeking avenues to develop.
Blackstone currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating.