CIT Finances GI Partners Acquisition
CIT Group served as joint lead arranger in a $243 million facility supporting GI Partners’ acquisition of Kellermeyer Bergensons Services.
CIT Corporate Finance served as joint lead arranger and joint bookrunner for the transaction. Financing was provided by CIT Bank. Terms 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, CEO 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’ services include contract cleaning, porter services, parking lot maintenance, snow removal, landscaping, and general repairs, as well as other trade and technical services.