FirstService has completed its acquisition of approximately 95% of Global Restoration Holdings, the second largest commercial and large loss property restoration firm in North America, for a purchase price of approximately $505 million.
Global Restoration’s senior management team, including Jeff Johnson, Stacy Mazur and Dave Demos, continue to lead Global Restoration’s day-to-day operations and have retained the balance of the equity.
In connection with the completion of the acquisition, FirstService has entered into an $890 million amended and restated credit facility consisting of its existing $450 million revolving credit facility and a new $440 million term loan. The maturity date of the revolving credit facility under the New Credit Agreement remains January 2023, and the maturity date of the term loan under the New Credit Agreement is June 2024.
Repayment of the term loan is to be made in installments of 5% per annum, paid quarterly, commencing in September 2020, with the balance payable at maturity. The new term loan commitments under the new credit agreement were substantially oversubscribed by a syndicate of 12 banks, led by TD Bank and including Bank of Montreal, CIBC, HSBC Bank, The Bank of Nova Scotia, JPMorgan Chase, U.S. Bank, Bank of America, MUFG Union Bank, National Bank, Raymond James Bank and Wells Fargo.
The Global Restoration acquisition was funded through a combination of the new term loan, additional funds drawn under the revolving credit facility and available cash on hand. The revolving credit facility under the new credit agreement will continue to be utilized for working capital and general corporate purposes and to fund FirstService’s tuck-under acquisition program.
“We appreciate the strong endorsement and confidence of our bank group in providing us with the necessary financing to complete this significant acquisition,” said Jeremy Rakusin, CFO. “At the same time, we will continue to ensure we maintain financial flexibility to drive all growth initiatives across FirstService’s business lines,” he added.
Denver-based FirstService is a provider in the essential outsourced property services sector, serving its customers through two industry-leading service platforms.