Funds News

ABM Industries nears deal to buy GCA Services Group for $1.25 bln - WSJ

July 11 (Reuters) - Facility management provider ABM Industries Inc is nearing a deal to acquire privately-held rival GCA Services Group Inc for $1.25 billion in cash and stock, the Wall Street Journal reported on Tuesday.

The deal could be confirmed as early as Wednesday, the Journal reported, citing people familiar with the matter.

ABM Industries will pay $850 million in cash and $400 million in common stock for GCA Services, the Journal added.

According to the report, ABM will incur a charge of $70 million in connection with the deal, which is expected to add about $1.1 billion in revenue after a year.

The combined company will have a total of 137,000 employees, the report added.

GCA Services Group was acquired by buyout firm Thomas H. Lee Partners LP and the private equity arm of Goldman Sachs Group Inc from Blackstone Group LP in 2016.

Blackstone acquired GCA in 2012 from investment firm Nautic Partners LLC and other minority shareholders for $715 million.

None of the companies were immediately available for comment outside regular U.S. business hours.

Reporting by Kanishka Singh in Kanishka Singh; Editing by Sunil Nair