Thomas H. Lee Partners and Goldman Sachs to Acquire GCA Services Group

Cleveland, Ohio – November 16, 2015 – The Merchant Banking Division of Goldman Sachs (“Goldman Sachs”), Thomas H. Lee Partners, L.P. (“THL”), and GCA Services Group, Inc. (“GCA”) today announced that affiliates of Goldman Sachs and THL have agreed to acquire GCA from funds managed by Blackstone. GCA is a leading national provider of janitorial/custodial services, facilities operations and maintenance, grounds management, and other outsourced workforce solutions to the education, commercial, and rental car end markets. As part of the proposed acquisition, GCA’s management team will invest alongside THL and Goldman Sachs.

Founded in 2003, GCA has over 37,000 employees in 46 states, the District of Columbia and Puerto Rico. GCA serves over 930 clients in a variety of sectors, including K-12 schools, higher education, manufacturing, corporate office buildings, high-tech, bio-pharmaceutical, nuclear power, defense, the rental car market, and others.

"Bob Norton and the GCA management team have built a leading organization with a strong culture of safety and customer-service, and a track-record of growth through leadership and innovation" said Chris Crampton, Managing Director at Goldman Sachs.  "We look forward to working with GCA to support their continued success and industry leadership."

“We couldn’t be more excited to be partnering with Bob Norton and his talented management team at GCA,” said Josh Bresler, Managing Director at THL. “GCA is an incredible company with strong market positions and a proven track record of growth. Most importantly, we are impressed with the dedication and work ethic of GCA’s 37,000 employees on behalf of their clients each and every day.”

 “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,” said Bob Norton, Chairman and CEO of GCA. “We appreciate the guidance, confidence, and support of the entire Blackstone team in helping us fuel our continued growth over the past three years,” Norton added. “They have been terrific partners and played an important role in helping us achieve our success.”

The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2016. Harris Williams & Co. served as advisor to Blackstone and GCA and Simpson Thacher & Bartlett LLP acted as legal counsel. Kirkland & Ellis LLP acted as legal counsel to Goldman Sachs and THL on the transaction.

About GCA Services Group

GCA Services Group, Inc. is a leading national provider of quality facility services, including janitorial/custodial services, contamination control for cleanroom manufacturing, facilities operations and maintenance services, grounds and athletic field management services, diversified staffing, and more. With over 37,000 employees throughout the United States and Puerto Rico, GCA serves over 930 clients in a variety of sectors, including K-12 schools, higher education, manufacturing, corporate office buildings, high-tech, bio-pharmaceutical, nuclear power, defense, the rental car market, and others. For more information, please visit www.gcaservices.com or follow GCA on Twitter, @gcaservices.

About Thomas H. Lee Partners

THL is one of the world’s oldest and most experienced private equity firms. The firm invests in growth-oriented businesses, headquartered principally in North America, across three broad sectors: consumer and healthcare, media and information services, and business and financial services. Since its founding in 1974, THL has raised over $20 billion of equity capital and invested in more than 130 businesses with an aggregate purchase price of more than $150 billion. THL strives to build great companies of lasting value and generate superior investment returns.

About Goldman Sachs Merchant Banking Division

Since 1986, the Merchant Banking Division of Goldman Sachs has raised over $140 billion of capital in equity, credit and real estate funds to invest in a variety of geographies, industries and transaction types. With Merchant Banking representatives in six countries around the world, Goldman Sachs is one of the largest managers of private capital globally, offering deep expertise and long-standing relationships with companies, investors, entrepreneurs and financial intermediaries.  Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world. For more information, please visit www.gs.com/pia.

MEDIA CONTACTS

For GCA:

Neil Guliano

216-535-4905

For Goldman Sachs:

Andrea Raphael

212-357-0025

 

For THL:

Matt Benson/Robin Weinberg/Devin Broda

212-687-8080