KKR to Sell GeoStabilization International to Leonard Green & Partners
KKR has announced an agreement to sell GeoStabilization International (GSI) to Leonard Green & Partners (LGP). The sale delivers a five-fold return on KKR's equity investment. All 900+ GSI employees will receive substantial cash payouts on their ownership stakes, with the longest-tenured hourly employees each receiving over $325,000 in proceeds.
Since KKR's acquisition in December 2018, GSI has experienced significant growth, nearly tripling its revenue and EBITDA. The company expanded its services, including into roadway safety, and enhanced worker safety. The transaction reflects the success of KKR's all-employee ownership program, which has fostered a strong ownership culture at GSI.
Employee payouts will range from three months to over three years of annual pay, depending on tenure and job level. KKR and GSI were advised by Harris Williams and UBS as M&A advisors, and Kirkland & Ellis as legal advisor on the transaction.
KKR ha annunciato un accordo per vendere GeoStabilization International (GSI) a Leonard Green & Partners (LGP). La vendita offre un ritorno cinque volte superiore all'investimento in capitale di KKR. Tutti i 900+ dipendenti di GSI riceveranno sostanziali pagamenti in contante per le loro partecipazioni, con i dipendenti orari più longevità che riceveranno ciascuno oltre $325.000 in proventi.
Dal momento dell'acquisizione da parte di KKR nel dicembre 2018, GSI ha registrato una crescita significativa, quasi triplicando il suo fatturato e il suo EBITDA. L'azienda ha ampliato i suoi servizi, inclusa la sicurezza stradale, e ha migliorato la sicurezza dei lavoratori. La transazione riflette il successo del programma di proprietà di KKR per tutti i dipendenti, che ha promosso una forte cultura di proprietà in GSI.
I pagamenti ai dipendenti varieranno da tre mesi a oltre tre anni di stipendio annuale, a seconda dell'anzianità e del livello lavorativo. KKR e GSI sono stati assistiti da Harris Williams e UBS come consulenti M&A, e da Kirkland & Ellis come consulenti legali per la transazione.
KKR ha anunciado un acuerdo para vender GeoStabilization International (GSI) a Leonard Green & Partners (LGP). La venta proporciona un retorno cinco veces mayor sobre la inversión de capital de KKR. Todos los 900+ empleados de GSI recibirán importantes pagos en efectivo por sus participaciones, con los empleados horarios de mayor antigüedad recibiendo cada uno más de $325,000 en ingresos.
Desde la adquisición de KKR en diciembre de 2018, GSI ha experimentado un crecimiento significativo, casi triplicando sus ingresos y EBITDA. La empresa amplió sus servicios, incluida la seguridad vial, y mejoró la seguridad laboral. La transacción refleja el éxito del programa de propiedad para todos los empleados de KKR, que ha fomentado una sólida cultura de propiedad en GSI.
Los pagos a los empleados oscilarán entre tres meses y más de tres años de salario anual, dependiendo de la antigüedad y el nivel del trabajo. KKR y GSI fueron asesorados por Harris Williams y UBS como asesores de fusiones y adquisiciones, y por Kirkland & Ellis como asesores legales de la transacción.
KKR는 GeoStabilization International (GSI)를 Leonard Green & Partners (LGP)에 판매하는 계약을 발표했습니다. 이번 매각은 KKR의 자본 투자에 대해 5배의 수익을 제공합니다. 모든 900명 이상의 GSI 직원은 각자의 소유 지분에 대해 상당한 현금 지급을 받으며, 최장 근속 시간의 시간제 직원은 각각 $325,000 이상의 수익을 받게 됩니다.
2018년 12월 KKR의 인수 이후 GSI는 매출과 EBITDA를 거의 3배 증가시키며 상당한 성장을 경험했습니다. 회사는 도로 안전을 포함한 서비스 확장을 이루었고, 근로자 안전을 강화했습니다. 이 거래는 KKR의 모든 직원 소유 프로그램의 성공을 반영하며, 이는 GSI에서 강력한 소유 문화를 조성했습니다.
직원 지급액은 근속 기간과 직무 수준에 따라 3개월에서 3년 이상의 연봉에 해당합니다. KKR과 GSI는 M&A 자문으로 Harris Williams와 UBS, 법률 자문으로 Kirkland & Ellis의 조언을 받았습니다.
KKR a annoncé un accord pour vendre GeoStabilization International (GSI) à Leonard Green & Partners (LGP). La vente génère un retour cinq fois supérieur à l'investissement en capital de KKR. Tous les 900+ employés de GSI recevront des paiements en espèces substantiels pour leurs participations, les employés horaires les plus anciens recevant chacun plus de $325,000 en revenus.
Depuis l'acquisition de KKR en décembre 2018, GSI a connu une croissance significative, presque triplant son chiffre d'affaires et son EBITDA. L'entreprise a élargi ses services, y compris la sécurité routière, et a amélioré la sécurité des travailleurs. La transaction reflète le succès du programme de propriété de KKR destiné à tous les employés, qui a favorisé une solide culture de propriété chez GSI.
Les paiements aux employés varieront de trois mois à plus de trois ans de salaire annuel, selon l'ancienneté et le niveau de poste. KKR et GSI ont été conseillés par Harris Williams et UBS comme conseillers en fusions et acquisitions, et par Kirkland & Ellis comme conseiller juridique pour la transaction.
KKR hat eine Vereinbarung bekanntgegeben, GeoStabilization International (GSI) an Leonard Green & Partners (LGP) zu verkaufen. Der Verkauf führt zu einem fünfmaligen Return auf KKRs Eigenkapitalinvestition. Alle 900+ GSI-Mitarbeiter erhalten erhebliche Barzahlungen für ihre Anteile, wobei die am längsten beschäftigten hourly-Mitarbeiter jeweils über $325.000 an Erlösen erhalten.
Seit der Übernahme durch KKR im Dezember 2018 hat GSI ein signifikantes Wachstum erlebt und dabei seinen Umsatz und EBITDA fast verdreifacht. Das Unternehmen hat seine Dienstleistungen, einschließlich der Straßensicherheit, erweitert und die Arbeitssicherheit verbessert. Die Transaktion spiegelt den Erfolg von KKRs Mitarbeiterbesitzprogramm wider, das eine starke Eigentumskultur bei GSI gefördert hat.
Die Zahlungen an die Mitarbeiter liegen zwischen drei Monaten und über drei Jahren Jahresgehalt, je nach Dienstzeit und Jobebene. KKR und GSI wurden von Harris Williams und UBS als M&A-Berater sowie von Kirkland & Ellis als rechtlichem Berater für die Transaktion unterstützt.
- KKR's sale of GSI delivers a 5x return on equity investment
- All 900+ GSI employees will receive substantial cash payouts
- GSI's revenue and EBITDA nearly tripled under KKR's ownership
- Expansion into complementary roadway safety services
- Significant enhancement of worker safety and delivery rates
- None.
Insights
The sale of GeoStabilization International (GSI) by KKR to Leonard Green & Partners is a significant transaction with multiple positive implications. KKR's 5x return on equity invested demonstrates strong value creation during their ownership period. The near tripling of revenue and EBITDA over roughly six years highlights impressive growth and operational improvements.
The all-employee ownership program is particularly noteworthy, with over 900 employees receiving cash payouts. This aligns with the growing trend of broader employee ownership in private equity portfolios. The payouts, ranging from
This transaction showcases KKR's successful implementation of its employee ownership strategy across its portfolio, having awarded billions in equity value to over 110,000 non-senior management employees. For investors, this approach can lead to improved company performance and potentially higher returns, as evidenced by GSI's growth under KKR's ownership.
The sale of GSI represents a significant trend in the private equity sector towards employee ownership models and their potential for driving company growth. Under KKR's ownership, GSI expanded its service offerings, particularly in roadway safety services, indicating a strategic diversification that enhanced its market position.
The transaction highlights the growing importance of ESG (Environmental, Social and Governance) factors in private equity investments. The employee ownership program and its substantial payouts demonstrate a focus on social responsibility and employee welfare, which can positively impact company performance and investor perception.
For the broader market, this deal may set a benchmark for employee compensation in private equity transactions, potentially influencing future deals and corporate structures. It also underscores the value creation potential in the geohazard mitigation and infrastructure safety sectors, which could attract more investment to these areas given their critical role in public safety and infrastructure resilience.
All 900+ GSI Employee Owners to Earn Cash Payouts, with Longest Tenured Hourly Employees Each Receiving Over
GSI employees react to the news of the cash payouts they will receive upon close of the transaction (Photo: Business Wire)
“It has been an honor working alongside Dominic, the management team, and GSI’s many talented employees to build on the Company’s strong legacy of serving customers and driving innovation. Through our strategic partnership we have expanded the Company’s reach, added service capabilities, and delivered on our mission to protect the public from the dangers of geohazards – all while investing significantly in GSI’s employees and our communities,” said Brandon Brahm, Partner at KKR and Co-Head of KKR’s Ascendant Strategy. “This is a great outcome for all GSI employee-owners and our limited partners in KKR’s Americas XII Fund and demonstrates our ability to be value-added strategic partners with middle market sized businesses.”
Since KKR’s acquisition of GSI in December 2018, the Company has experienced significant growth resulting from KKR’s investments in the business, including in employees, business infrastructure, service expansion and corporate development, all of which contributed to a near tripling of revenue and EBITDA. Over this roughly six-year ownership period, the Company successfully grew its family of brands and services, including an expansion into complementary roadway safety services. GSI also significantly enhanced worker safety and increased its rate of delivery for customers.
“This transaction is a testament to our years of collaboration with KKR and also reflects the dedication and hard work of the entire GSI team. KKR catalyzed our all-employee ownership program, developing an ownership culture that has made us even stronger. We are very proud that all GSI colleagues will share in this fantastic outcome,” said Dominic Ivankovich, CEO of GSI.
As a result of GSI’s all employee ownership program, all of GSI’s more than 900 employees will receive cash payouts upon closing of the transaction. This includes GSI’s over 550 field service colleagues, with the payouts for employees joining before December 2023 ranging from three months to over three years of annual pay, depending on tenure and job level. Employees will also receive pre-paid personal financial coaching and tax preparation services.
“GSI is a prime example of what ownership cultures can accomplish within the services sector and speaks to the power of an engaged workforce. This tremendous outcome recognizes the work GSI’s employees have done to create value, not just for the company but for themselves,” said Pete Stavros, Co-Head of Global Private Equity at KKR. “GSI will be in great hands with LGP, a fellow partner in Ownership Works, who shares our deep commitment to ownership and will carry on this effort at GSI following the close of this transaction.”
Since 2011, KKR has implemented broad-based employee ownership and alignment programs throughout its portfolio, first pioneered by KKR’s
KKR and GSI were advised by Harris Williams and UBS as M&A advisors, and Kirkland & Ellis as legal advisor on the transaction.
About GeoStabilization International
GeoStabilization International® is the leading geohazard mitigation firm operating throughout
About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
About LGP
Leonard Green & Partners, L.P. (“LGP”) is a leading private equity investment firm founded in 1989 and based in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240926128753/en/
Media:
KKR
Liidia Liuksila or Emily Cummings
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Source: KKR
FAQ
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