GCM Grosvenor and Blue Wolf Capital Acquire Hallcon Corporation

Rhea-AI Summary

GCM Grosvenor (Nasdaq: GCMG) and Blue Wolf Capital Partners announced the acquisition of Hallcon Corporation from Novacap. This strategic move aims to enhance Hallcon's North American footprint and expand its electric vehicle charging infrastructure.

With operations across 29 U.S. states and six Canadian provinces, Hallcon provides critical transportation services and facilities maintenance. The investment will facilitate growth in new markets, including Seattle, Austin, and Atlanta, while supporting customers transitioning to electric fleets.

Positive

• Expansion into new North American markets: Seattle, Austin, Atlanta, Washington, D.C.
• Enhancement of electric vehicle charging infrastructure to support customer fleet transitions.
• Strong backing from Blue Wolf and GCM Grosvenor, enhancing Hallcon’s market position.

Negative

• None.

Acquisition will accelerate the growth of Hallcon’s footprint through expansion into new North American markets and investment in electric vehicle charging infrastructure

CHICAGO, July 05, 2022 (GLOBE NEWSWIRE) -- GCM Grosvenor (Nasdaq: GCMG), a leading global alternative asset management solutions provider, investing through its Labor Impact Strategy, and Blue Wolf Capital Partners LLC (“Blue Wolf”), a New York-based private equity firm with approximately $2.9 billion of assets under management, announced today that they have acquired Hallcon Corporation (“Hallcon” or the “Company”) from Novacap, a Canadian private equity firm. Terms of the transaction were not disclosed.

Hallcon is the leading North American provider of mission-critical transportation services and infrastructure for a broad range of customers including railroads, universities, airports, hospitals and healthcare systems, public transit, technology and industrial companies, and other large employers seeking custom transportation solutions. In addition, the Company provides essential cleaning, disinfecting, and facilities maintenance services to municipal, regional, and national rail and transit providers throughout the United States and Canada. Headquartered in Chicago, Hallcon has a coast-to-coast North American footprint, with direct operations across 29 U.S. states and six Canadian provinces. With Blue Wolf and GCM Grosvenor’s backing, the Company will be able to accelerate Hallcon’s expansion into new North American markets including Seattle, WA, Austin, TX, Atlanta, GA, Washington, D.C. and more. The firms also intend to enhance the Company’s ability to scale its electric vehicle (“EV”) charging infrastructure to continue supporting the evolving needs of its customers that are transitioning to electric fleets.

John R. Stoiber, President and CEO of Hallcon, said, “We are very excited to partner with GCM Grosvenor and Blue Wolf as we accelerate the growth of our services in new geographies and expand our EV charging network across North America. Their commitment to supporting the construction of critical EV infrastructure makes them the right partners for Hallcon, and we look forward to leveraging their relationships, resources, and expertise as we execute on our growth strategy.”

“Blue Wolf is pleased to partner with Hallcon, a leading platform in the outsourced transportation space. The Company has significant opportunity ahead to enhance its leadership position and drive growth as customers electrify their fleets,” said Jeremy Kogler, Managing Partner at Blue Wolf. “Hallcon has a reputation for best-in-class service and reliability, which is evidenced by the Company’s long-standing relationships with its blue-chip customer base. We look forward to joining the Company and GCM Grosvenor in the next phase of growth.”

“Hallcon is led by a management team of experienced operators who are well-equipped to help customers navigate the shift to electric vehicles, and our investment partner Blue Wolf shares our vision for value creation and growth,” added James DiMola, Executive Director at GCM Grosvenor. “In addition, the Company’s highly skilled workforce of drivers and dispatchers are integral to Hallcon’s success, and they do tremendous work to ensure that its customers are safe and satisfied.”

TD Securities served as financial advisor and Greenberg Traurig, LLP served as legal advisor to GCM Grosvenor and Blue Wolf in connection with the transaction. Houlihan Lokey served as financial advisor and Blake, Cassels & Graydon LLP served as legal advisor to Hallcon.

About GCM Grosvenor

GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $71 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. The firm has specialized in alternatives for more than 50 years and is dedicated to delivering value for clients by leveraging its cross-asset class and flexible investment platform. GCM Grosvenor’s experienced team of over 520 professionals serves a global client base of institutional and high net worth investors. The firm is headquartered in Chicago, with offices in New York, Toronto, London, Frankfurt, Tokyo, Hong Kong, and Seoul. For more information, visit: gcmgrosvenor.com.

GCM Grosvenor’s Labor Impact Strategy seeks to originate and execute infrastructure projects that leverage the inclusion of union labor as a contributing factor to enabling attractive risk-adjusted returns. The goal of the strategy is to find attractive infrastructure investment opportunities that can be unlocked through close cooperation across labor, government, and private capital.

About Blue Wolf Capital Partners

Blue Wolf Capital Partners LLC is a private equity firm that specializes in control investments in middle market companies. Leading by experience, and with a commitment to excellence, Blue Wolf transforms companies strategically, operationally, and collaboratively. Blue Wolf manages challenging situations and complex relationships between business, customers, employees, unions, and regulators to build value for stakeholders. For additional information, please visit www.bluewolfcapital.com.

About Hallcon Corporation

Headquartered in Chicago, Illinois with offices in San Jose, California, Lenexa, Kansas, and Toronto, Ontario, Hallcon is the leading North American provider of mission-critical transportation services and infrastructure for a broad range of customers including railroads, universities, airports, hospitals and healthcare systems, public transit, technology and industrial companies, and other large employers seeking custom transportation solutions. In addition, the Company provides essential cleaning, disinfecting, and facilities maintenance services to municipal, regional, and national rail and transit providers throughout the United States and Canada. The Company has a coast-to-coast North American footprint, with direct operations across 29 U.S. states and six Canadian provinces. For additional information, please visit http://www.hallcon.com.

Media Contacts
GCM Grosvenor
Tom Johnson and Will Braun
Abernathy MacGregor
tbj@abmac.com / whb@abmac.com
212-371-5999

Blue Wolf Capital Partners
Steve Frankel, Ed Trissel, and Arielle Rothstein
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

FAQ

What is the significance of the GCM Grosvenor and Blue Wolf acquisition of Hallcon Corporation?

The acquisition aims to expand Hallcon's footprint in North America and enhance its electric vehicle charging infrastructure.

When was the acquisition of Hallcon Corporation announced?

The acquisition was announced on July 5, 2022.

What markets will Hallcon expand into following the acquisition?

Hallcon plans to expand into markets such as Seattle, Austin, Atlanta, and Washington, D.C.

What strategy does GCM Grosvenor's investment focus on?

GCM Grosvenor focuses on investment opportunities that leverage union labor for infrastructure projects.

How will the acquisition impact Hallcon Corporation's operations?

The acquisition will accelerate Hallcon's growth and support its transition to electric vehicle services.