Goldman Sachs Group’s private equity arm and buyout firm Thomas H. Lee Partners LP have agreed to buy Cleveland-based facility management company GCA Services Group from Blackstone Group. As part of the acquisition, GCA’s management team “will invest alongside THL and Goldman Sachs,” according to a announcing the deal. Terms of the investment were not disclosed. GCA, founded in 2003, is a national provider of janitorial/custodial services, facilities operations and maintenance, grounds management, and other outsourced workforce services to the education, commercial and rental car markets. The company says it has more than 37,000 employees in 46 states, the District of Columbia and Puerto Rico. Citing “people familiar with the matter,” the Reuters news service that the purchase price is “around $1 billion, including debt.” A spokesman for GCA did not immediately return a phone call on Monday afternoon, Nov. 16. In the news release, Bob Norton, chairman and CEO of GCA, said, “We are excited about our new partnership with Thomas H. Lee Partners and Goldman Sachs, as well as the tremendous opportunities ahead to continue to grow our business in the attractive facility services market.” He added, “We appreciate the guidance, confidence, and support of the entire Blackstone team in helping us fuel our continued growth over the past three years. They have been terrific partners and played an important role in helping us achieve our success.” Blackstone acquired GCA in 2012 from investment firm Nautic Partners LLC and other minority shareholders for around $600 million, Reuters reported. The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2016, according to the release.
Goldman Sach's private equity arm and Thomas H Lee Partners are to buy GCA Services Group from Blackstone Group, for an undisclosed amount, though sources suggest the purchase price is in the region of $1bn, including debt. Blackstone purchased GCA in 2012 for about $600m.