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On Wednesday, Blackstone Capital Partners V, L.P − a private equity fund managed by The Blackstone Group LP (BX - Analyst Report) − announced that it will acquire GCA Services Group from Nautic Partners, L.L.C. and other minor shareholders. The deal, anticipated to be completed in October this year, is subject to certain approvals by the government and other specific closing conditions.

Headquartered in Cleveland, Ohio, GCA provides quality facility services in the U.S.

In addition to financing the deal, Credit Suisse Group (CS - Snapshot Report) and Morgan Stanley (MS - Analyst Report) played the role of merger and acquisition advisors to Blackstone. The legal counsel of the deal was Simpson Thacher & Bartlett L.L.P.

Robert W. Baird & Co. was the primary financial advisor to GCA, whereas Jefferies Group, Inc. was the co-advisor. Legal counsel to GCA was Calfee, Halter & Griswold L.L.P.

Blackstone anticipates the deal to offer a remarkable prospect of investing in one of the leading firms in the business services segment, where the company has considerable proficiency. Further, GCA’s attractive market position and brisk growth offers an added incentive. Blackstone is anticipating working with the exceptional management of GCA to carry on investing in the latter's growth.

Further, Robert Norton – the Chairman, President and CEO of GCA – stated that the deal offers a very good prospect to stimulate its gradual growth. The deal with Blackstone reflects the GCA’s sustained dedication to grow dynamically, which will lead to enhanced service quality to the consumers. Moreover, Nautic Partners consider the Blackstone-GCA partnership to be an excellent collaboration, since the former has a remarkable growth history and is further seeking avenues to develop.

Blackstone currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
 

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