Case History
5
Along with our management team, I worked with the Nautic team for over 10 years and built GCA into one of the nation’s leading facilities management companies. Nautic was an excellent partner and advisor from the earliest stages through to the successful sale of GCA to the Blackstone Group. Throughout the process, we grew GCA and acquired a number of companies across the country with Nautic’s guidance, resources, and solid support. Since that time, the management team and I have worked with Nautic to launch two additional companies: ESS and HES Facilities, both operating in the Education market. We expect the same level of success and achievement with these investments.
Buddy Helton, President - Education Division

GCA Services

During Nautic’s ownership of GCA Services Group, the company grew from a small, regional janitorial services company to one of the largest and fastest growing fully-integrated facility services companies in the country. We made 11 add-on acquisitions and while doing so, we targeted the fast-growing education market and became the #1 provider of outsourced facility services in the country. We also targeted other niche commercial end markets including bio-pharmaceutical, nuclear energy and high tech. After a successful ownership period, the company was sold to The Blackstone Group.

BUSINESS OVERVIEW

GCA Services is a leading facility services company, providing custodial, facilities maintenance, grounds management and other ancillary services to customers throughout the U.S. and Puerto Rico. The company has been focused on select, niche segments of the facility services industry that have strong growth prospects and high barriers to entry. Customers in the company’s target end markets generally require expertise and, as a result, are often willing to pay a premium for quality service. GCA became the leader in the U.S. K-12 education markets and during our ownership grew significantly in excess of the U.S. janitorial services market.

THE SITUATION

The first GCA platform company was a small, regional operator focused on commercial end markets exclusively in the Southeast. Our thesis was to focus on niche, growing end markets that would be outsourcing facility services at a faster rate than the traditional, more saturated end markets. We targeted educational institutions, pharmaceutical plants and high tech facilities. We needed to move quickly and acquire businesses that would give us exposure to those markets, and then deliver high levels of customer service to increase customer retention and growth.

WHAT WE DID

Nautic supported GCA in a variety of ways which resulted in expansion of services to 46 states, the District of Columbia and Puerto Rico, and GCA’s acquisition of 11 companies during our ownership. We worked closely with the Board and our CEO to refine strategy, upgrade the management talent as the company became larger and more complex, negotiate and structure the acquisitions, and work with the lending community to make sure the company was properly funded. GCA was sold to The Blackstone Group in 2012.

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Certain statements about Nautic made by portfolio company executives herein are intended to illustrate Nautic’s business relationship with such persons, including with respect to Nautic’s facilities as a business partner, rather than Nautic’s capabilities or expertise with respect to investment advisory services. Portfolio company executives were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company roles, and in certain cases are also owners of portfolio company securities and/or investors in Nautic-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.