CIT Group joint arranger in $243 million buy-out

CIT Group has 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), which is a leading national provider of contract cleaning and related facility support services to retail and other sectors in North America.

Financing for the deal was provided by CIT Bank, and the terms of the transaction were not disclosed.

Eric Toizer, managing director of CIT Sponsor Finance, said the financing would enable KBS to grow the company 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.”

Cho went on to add: “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.”

Established in 2011, KBS currently serves over 300 retail and grocery customers in 14,000 customer locations in Canada and the United States, including Puerto Rico. Its portfolio of services include interior and exterior contract cleaning, landscaping, parking lot maintenance and snow removal.