CCMP Capital to buy BGIS for roughly $1 bln


CCMP Capital Advisors LP said March 11 that it is buying BGIS for about $1 billion. Brookfield Business Partners is the seller. CEO Gordon Hicks and the management team will remain in place. BGIS is a facilities management company.

PRESS RELEASE

CCMP CAPITAL TO ACQUIRE INTEGRATED FACILITY MANAGEMENT SERVICES COMPANY, BGIS
CCMP Partnering With Management To Support Company’s Continued Innovation and Growth
Business Wire
11 March 2019

NEW YORK and TORONTO, March 11, 2019 — CCMP Capital Advisors, LP (“CCMP”) and BGIS (“BGIS” or the “Company”) today announced that they have entered into a definitive agreement under which affiliates of CCMP will acquire BGIS, a leading integrated facilities management (“IFM”) company, from Brookfield Business Partners for approximately US$1 billion. The Company’s Chief Executive Officer, Gordon Hicks, and the management team will remain in place and work with CCMP to support the Company’s next phase of growth.

Leading the global real estate industry with innovative outsourcing and fully integrated solutions since 1992, BGIS provides a full spectrum of customized facility management services, project delivery services, energy and sustainability solutions, asset management, workplace advisory and management, and real estate services to real estate and infrastructure owners and occupiers. Supported by a team of over 7,000 globally, the Company manages over 320 million square feet of client portfolios across over 30,000 locations in Australia, Asia, North America and Europe.

“BGIS has developed into a world class Integrated Facility Management Services business by always putting the interests of our customers and communities first, constantly innovating and searching for new opportunities to create value for all stakeholders, and implementing sustainable operating practices that contribute to creating a better world. We’ve never been stronger as an organization, and I look forward to continuing to build BGIS in partnership with CCMP,” said Mr. Hicks.

“We have been very impressed by the industry-leading business the experienced BGIS management team has built over the years, rooted in a strong culture of caring, innovation and high-performance,” said Greg Brenneman, Executive Chairman of CCMP. “We are excited to partner with Gord and his team to continue to grow BGIS for the benefit of customers and employees.”

The transaction is expected to close in the second quarter of 2019, subject to customary closing conditions. Ropes & Gray LLP and McCarthy Tétrault LLP are acting as legal counsel to CCMP with assistance from Australian counsel, Clayton Utz. Morgan Stanley is serving as financial advisor to CCMP.

About BGIS

BGIS is a global leader in the provision of facility management, project delivery, energy & sustainability, asset management, workplace advisory, and real estate services. With a combined team of over 7,000 globally, BGIS relentlessly focuses on delivering innovative service solutions that create value for its clients. Globally, BGIS manages over 30,000 facilities totaling more than 320 million square feet across several markets including Government, Higher Education, Utilities, Telecommunications, Financial Services, Oil & Gas, Healthcare and Cloud Enterprise. In addition to managing a diverse portfolio of corporate offices, retail, colleges, hospitals and industrial assets, BGIS is a world leader in the management of data centers and other critical environments.

About CCMP Capital

CCMP Capital Advisors, LP (“CCMP”) specializes in middle market buyouts and growth equity investments of $100 million to $500 million in North America and Europe. CCMP focuses on generating alpha through the operational transformation and growth of its portfolio companies. With offices in New York and Houston, CCMP invests in three primary industries: Consumer, Industrial and Healthcare. Selected investments under management include: Founder Sports Group, Eating Recovery Center, Hayward, The Hillman Group, Jetro Cash & Carry, PQ Corporation, Shoes For Crews and Truck Hero. Past investments in outsourced business services companies include Aramark, Brand Industrial Services and Safetykleen.
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