Abm Industries Incorporated · NYSE:ABM
Abm Industries — Merger or Acquisition (July 2017)
8 slides from Abm Industries's merger presentation, Jul 12, 2017
Slide 1: Acquisition of GCA Services Group
Cover Slide Title (20pt. Bold) Acquisition of GCA Services Group July 12, 2017
Slide 2: Agenda
Agenda 2 3 Financial Implications Forward - Looking Statements and Non - GAAP Financial Information: Our discussions during this conference call will include forward - looking statements. Actual results could differ materially fro m those projected in the forward - looking statements. Some of the fa
Slide 3: Transaction Summary
Transaction Summary 3 • ABM has signed a definitive agreement to acquire GCA Services Group for approximately $1.25 billion in cash and stock: ‒ $851 million to be funded through borrowings under amended revolver and term loan A ‒ $399 million of ABM common stock • Acquisition estimated to add appro
Slide 4: GCA Overview
Education Division 56% $573mm Commercial Division 43% $436mm Vehicle Services 7 % Education 57 % Commercial 36 % Revenue breakdown Key statistics • Revenue contribution of approximately $1.1 billion • Approximately $100 million of adjusted EBITDA * • 3,200 + K - 12 schools served across ~250 distric
Slide 5: Financial Implications
Financial Implications 5 • Total revenues to increase by approximately $1.1 billion and adjusted EBITDA to increase by approximately $100 million • ABM Education industry - group to increase revenue from $250 million to approximately $850 million annually • Estimated $ 500 million in annual revenue
Slide 6: Transformative Combination
Transformative Combination 6 Strategic fit under 2020 Vision Industry talent and insight Achievable cost synergies Bolstered Education presence Elevated margin profile Increased FCF generation Enhanced revenue opportunities Increased scale and density
Slide 7: Forward-Looking Statement
Forward - Looking Statement This presentation contains both historical and forward - looking statements addressing the plan of ABM Industries Incorporated (“ABM” and, together with its subsidiaries, collectively referred to as “ABM,” “we,” “us,” “our,” or the “Company”) to acquire GCA Services Group
Slide 8: Use of Non-GAAP Financial Information
Use of Non - GAAP Financial Information The Company has presented, in this press release, an estimate for GCA’s adjusted EBITDA contribution and total debt to proforma lender - adjusted EBITDA, which includes an estimate for adjusted EBITDA related to GCA . Adjusted EBITDA is a non - GAAP financial