ABM Industries has paid $300 million for The Linc Group, a portfolio company of private equity firm GI Partners. The deal represents a 4.4x return for GI Partners, which acquired the company in a 2003 management-led buyout of Linc from the Enron bankruptcy process. The Irvine, Calif.-based Linc Group provides technical building services, including ventilation and air condition services, lighting and electrical services and maintenance and repair. GI Partners has offices in Menlo Park, Calif.; London and Munich. The firm has raised $3.9 billion in capital since its formation in 2001.
GI Partners (“GI”) announced today the completion of the sale of its portfolio company, The Linc Group, LLC (“TLG” or “Linc”), a leading global provider of technical building services, to ABM Industries Inc. (NYSE: ABM) for $300 million in cash, generating a 4.4x return on invested capital. TLG was acquired by GI Partners in a management-led buyout from the Enron bankruptcy process in 2003. Over a seven-year holding period, GI Partners worked closely with Linc’s management team to significantly diversify and expand the company’s customer base, growing revenue and EBITDA by 3.3x and 7.6x, respectively. In addition, GI Partners helped TLG execute six major strategic acquisitions and a number of smaller tuck-in acquisitions, creating the premiere global provider of technical building services, comprehensive green solutions, and other training and support services.
As a result of this transaction, ABM’s leading position in the facilities services industry will be further solidified, with over $4 billion in annual revenue and nearly 100,000 employees. Tracy Price, CEO of The Linc Group, said, “As TLG embarks on its next chapter of business growth, we are excited to partner with a company that has a long, successful operating history and deep industry expertise. We are also enthusiastic to assist ABM in expanding its already substantial capabilities and global reach.” Mr. Price added “TLG has benefited significantly from its relationship with GI Partners and we have valued their commitment to the success of our firm. Since the partnership was formed, we have created over 2,000 jobs and assembled a unique offering of technical services and capabilities for our clients worldwide.”
Rick Magnuson, Executive Managing Director of GI Partners, said, “We are proud to have partnered with Tracy Price and the exceptional management team at Linc in building the global leader in technical building services. This exit marks the successful culmination of years of teamwork between The Linc Group and GI Partners. We are also very pleased with the return we have delivered to our investors, which further demonstrates the success of our investment strategy.”
Jefferies & Co. served as financial advisor to Linc on the transaction, and Paul, Hastings, Janofsky & Walker LLP served as legal advisor. Credit Suisse served as financial advisor to ABM on the transaction, and Jones Day served as legal advisor.
About GI Partners
Established in 2001, GI Partners is a leading trans-Atlantic private investment firm that focuses on control-oriented investments in asset-backed businesses and properties located in North America and Western Europe. The firm is active in a number of key sectors, including asset-backed IT services, specialist healthcare and education, leisure, commercial real estate, hospitality, retail and financial services. Since inception, the firm has secured $3.9 billion of capital commitments on behalf of recognized institutional private equity and real estate investors in the U.S., Europe, Asia and the Middle East. It is currently investing from GI Partners Fund III. For more information, please visit www.gipartners.com.
About The Linc Group
Irvine, CA based The Linc Group is one of the premier providers of technical building services – including on-site integrated facility operations management and training services; commercial mobile heating, ventilation, and air condition (HVAC) services; commercial and residential lighting and electrical preventative maintenance and repair; and green and energy efficiency solutions – in the world. The Linc Group unites its operating companies through its unique business methodology and Microsoft award-winning technology framework. Collectively, Linc companies service more than 25,000 facilities in 46 states and in select international markets through a professional workforce totaling over 3,000 employees. For more information visit www.thelincgroup.com.
About ABM Industries Incorporated
ABM Industries Incorporated (NYSE:ABM), which operates through its subsidiaries (collectively “ABM”), is the leading provider of facility services in the United States. With fiscal 2009 revenues of approximately $3.5 billion and more than 90,000 employees, ABM provides janitorial, facility, engineering, parking and security services for thousands of commercial, industrial, institutional and retail facilities across the United States, Puerto Rico and British Columbia, Canada. ABM’s business services include ABM Janitorial Services, ABM Facility Services, ABM Engineering Services, Ampco System Parking and ABM Security Services. For more information visit www.abm.com.
Contact: Chris Tofalli
Chris Tofalli Public Relations, LLC