LASALLE, QC, Jan. 4, 2022 /PRNewswire/ - GDI Integrated Facility Services Inc. (TSX:GDI) (the "Company" or "GDI") is pleased to announce that its U.S. subsidiary GDI Integrated Facility Services USA Inc. has concluded the acquisition of IH Services, Inc. and its affiliates ("IH") effective December 31, 2021.
Founded in 1955 with a head office in Greenville S.C., IH is one of the largest and most respected janitorial service providers in the Southeastern United States. With close to 8,000 employees, IH generated approximately USD$200 million in annual revenue in the twelve-month period ending August 30, 2021.
"We are extremely excited to welcome the IH team to GDI's family," stated Claude Bigras, President and CEO of GDI. "IH is a leader in the industry in the Southeastern USA and has operations spanning 29 states servicing predominantly the industrial, distribution and healthcare markets. IH is led by a strong and seasoned management team who will continue to operate the business and will become GDI's regional leadership team covering the U.S. Southeast. The acquisition of IH represents a meaningful expansion of GDI's U.S. business, significantly expanding our U.S. janitorial operations and geographic footprint. The purchase price multiple was within our customary range for large acquisitions, and we expect IH's normalized adjusted EBITDA[1] margin to be in-line with GDI's long term margin objectives as best practices are shared and operating efficiencies are realized."
"We are very excited about partnering with GDI," stated Ryan Hendley, President and CEO of IH. "Since being founded by my father Dick Hendley in 1955, IH has grown into one of the largest facility services providers based in the Southeast and what we feel is one of the best companies in our industry. I am incredibly proud of the entire team at IH for building IH into the company it is today, and feel that GDI is the best partner for us because there is a strong business fit and we share the same culture and values. I am very much looking forward to working with GDI to continue the growth and success of our business."
ABOUT GDI
GDI is a leading commercial facility services provider which offers a range of services in Canada and the United States to owners and managers of a variety of facility types including office buildings, hotels, shopping centres, industrial facilities, healthcare establishments, distribution facilities, airports and other transportation facilities. GDI's commercial facility services capabilities include commercial janitorial, installation, maintenance and repair of HVAC-R, mechanical and electrical systems, as well as other complementary services such as damage restoration and janitorial products manufacturing and distribution. GDI's subordinate voting shares are listed on the Toronto Stock Exchange (TSX: GDI). Additional information on GDI can be found on its website at www.gdi.com.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to GDI's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "confident"; "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding GDI's future operating results and economic performance and its objectives and strategies, and the anticipated benefits of the IH acquisition are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which GDI believes are reasonable as of the current date. While management considers these assumptions to be reasonable, they may prove to be incorrect. It is impossible for GDI to predict with certainty the impact that the current economic uncertainties may have on future results. The matters addressed in these statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the risk that the existing and acquired business will not be integrated successfully, the risk that cost savings and synergies expected to result from the acquisition may not be fully realized or may take longer to realize than expected, disruption from the acquisition making it more difficult to maintain relationships with customers, employees or suppliers and the effect of general economic conditions. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While management may elect to, the Company is under no obligation and does not undertake to update or alter this information at any particular time, except as may be required by law.
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1 The terms "Adjusted EBITDA" and "Adjusted EBITDA Margin" do not have standardized definitions prescribed by International Financial Reporting Standards and therefore, may not be comparable to similar measures presented by other companies. "Adjusted EBITDA" is defined as operating income before depreciation and amortization, Canadian Emergency Wage Subsidy and related expenses, transaction, reorganization and other costs and share-based compensation. The Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by revenues. For more details and for a reconciliation of that measure to the most directly comparable IFRS measure, consult the "Operating and Financial Results" section of the Company's Management Discussion & Analysis (MD&A).
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SOURCE GDI Integrated Facility Services Inc.
