- CCMP Capital Advisors agreed to buy integrated facilities management provider BGIS from Brookfield Business Partners for about US$1B, closing May 31, 2019.
- Brookfield grew BGIS significantly since 2015 to manage 320M+ sq. ft. across 30,000+ sites globally with 7,000+ employees.
- CCMP kept CEO Gord Hicks and targeted growth via new geographies, expanded services (energy/sustainability and workplace/real estate), and tuck-in acquisitions.
- Brookfield reportedly realized a 4x+ return on invested capital and the transaction was later named Canada PE Deal of the Year (2020).
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The CCMP acquisition of BGIS is a classical private equity case where growth, operational improvements, and geographic expansion under prior owners effectively set up an attractive exit. The US$1 billion purchase price (c. CAD$1.3 billion) reflects both the scale BGIS had achieved by 2019—managing 320 million sq ft, 30,000+ locations and over 7,000 employees globally —and the premium for its integrated facilities management (IFM) platform inclusive of energy, sustainability, technical services, real estate, and workplace advisory.
CCMP’s value creation thesis seems rooted in several vectors: underserved markets/geographies, high technical services margin, and leveraging sustainability/IoT/automation to differentiate. The company aimed to grow both organically (new clients, service line expansion) and via accretive acquisitions. This strategy aligns with broader outsourcing trends in FM, especially in complex environments like data centers, government, higher education, etc.
From Brookfield’s standpoint, the investment trajectory (acquisition in 2015, build-out through 2017, sale in 2019) represents disciplined private equity investing with successful exit, particularly as EBITDA doubled in the period and management preserved margins even amidst aggressive expansion and acquisitions.
Strategic implications: for CCMP, maintaining operational momentum and realizing synergies (especially via cross-selling, global efficiencies, digital innovations) will be critical. Risks include execution in multiple geographies, preserving service quality as scale increases, competition from global IFM players and government contract dynamics. Also, macroeconomic pressures (labor, energy costs) and ESG expectations are particularly material in FM services.
Open questions: What exact EBITDA and revenue multiples were paid (beyond USD/CAD purchase price)? How has CCMP performance actually traced relative to projections since acquisition (post-2019)? What integrations or platform acquisitions have occurred? How have the sustainability/energy service lines evolved and contributed to margins?
Supporting Notes
- BGIS was acquired by CCMP from Brookfield Business Partners for ~US$1 billion; the agreement announced in March 2019 and closed on May 31, 2019.
- Under Brookfield’s ownership since 2015, BGIS expanded to manage over 320 million square feet and over 30,000 locations across North America, Asia-Pacific, and Europe.
- BGIS employed over 7,000 people globally by the time of sale in 2019.
- CEO Gord Hicks and the existing management team were retained by CCMP post-acquisition, to oversee the growth phase.
- CCMP’s growth plan for BGIS included expansion into underpenetrated geographies, further product/services innovation (including energy and sustainability solutions), and executing tuck-in acquisitions.
- Brookfield achieved a more than 4× multiple on its invested capital, reflecting strong return on its original investment in BGIS.