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CIT Serves as Joint Lead Arranger in $243MM Financing to GI Partners

December 19, 2014, 07:53 AM
Filed Under: Facilities Management

CIT Group Inc. served as joint lead arranger in a $243 million senior secured credit facility for GI Partners, a San Francisco-based private equity firm, to acquire Kellermeyer Bergensons Services (KBS), a leading national provider of contract cleaning and related facility support services to retail and other sectors in North America. CIT Corporate Finance served as joint lead arranger and joint bookrunner for the transaction. Financing was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of the transaction 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.”

KBS was established in 2011 after the merger of Kellermeyer Building Services LLC, which was founded in 1967, and Bergensons Property Services Inc., founded in 1984. The company’s services include contract cleaning, porter services, parking lot maintenance, snow removal, landscaping, and general repairs, as well as other trade and technical services. With over 11,000 direct employees and a North American network of affiliated contractors, KBS currently serves over 300 retail and grocery customers in 14,000 customer locations in Canada and the United States, including Puerto Rico. The company is based in Oceanside, California and Maumee, Ohio.

Founded in 2001, GI Partners is a leading middle-market private equity investment firm based in San Francisco. The firm currently manages over $11 billion in capital commitments through private equity and real estate strategies for recognized institutional investors, including some of the largest state and sovereign pension funds in North America, Europe, Australia, Asia, and the Middle East. GI Partners is active in a number of key sectors, including TMT, Healthcare Services, Retail & Leisure, and Financial & Real Estate Services.

CIT Corporate Finance provides lending, leasing, and other financial and advisory services to the middle market with a focus on specific industries, including: aerospace & defense, business services, communications, energy, entertainment, gaming, healthcare, industrials, information services & technology, restaurants, retail, sports & media, and transportation.

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