Valiant (Acquisition of ABMGS)

Company Background:

GC Companies is an independent sponsor interested in building a leading mission-critical services supplier to the United States government. Candlewood previously worked with GCC on the initial platform acquisition of Valiant, which provides global expeditionary services to the Defense Logistics Agency.

Services Provided:

Acquisition Services

Capital Structuring

Situation

Immediately after closing the Valiant acquisition, GCC was presented with the opportunity to acquire ABM Government Services. ABMGS was the government services subsidiary of ABM a $5 billion market cap provider of commercial and industrial services. ABMGS provided mission support and linguistic services, critical infrastructure services, and other healthcare-related services to the US government.

Transaction Overview

While continuing to assist in the transition and operation of Valiant as a standalone entity, Candlewood Partners simultaneously began to evaluate the potential acquisition of ABMGS. Candlewood was able to perform diligence, advise in purchase price and working capital negotiations, raise multiple tranches of capital including senior term and revolving debt, and complete the transaction in less than 90 days following the signing of the LOI.

The acquisition of ABMGS offered Valiant the opportunity to immediately diversify its service offerings and revenue base, addressing a key priority for management and GCC following the initial acquisition of Valiant. By completing the ABMGS acquisition under tight time constraints and during a critical early period in the timeline of newly-acquired Valiant, management was able to double the size of its business and solidify Valiant as a growing market competitor in the government services arena.

Post-closing, Candlewood continued its relationship with the combined business by providing treasury management and CFO-level services, leading the integration of disparate finance and accounting functions operating in different countries, and advising on senior management hires.

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