Yesterday we learned that ARM industry titan GC Services was acquired by Owner Resource Group, based in Austin, TX, and NB Alternatives Advisors, a subsidiary of Neuberger Berman. This transaction closed on December 31, 2015, but no one knew about it until this week. Everything GC Services has done, they’ve done quietly, so I’m not surprised this took nearly two weeks to surface.
This announcement will surprise a lot of ARM industry veterans because Jerry Katz owned GC forever. Nobody ever thought he would part with it. Unlike nearly all of the large, established ARM companies, GC Services stood alone as the biggest company that grew organically. It never went public and it wasn’t influenced by private equity. It just goes to show that everything changes, even GC Services.
ARM is in the midst of a tremendous upheaval as sweeping economic, market, and regulatory changes impact companies of all sizes from every facet of the industry. I was pleased to learn that the executive team, led by veteran President Frank Taylor, will remain intact. I am sure GC Services will continue to be a formidable player for decades to come.
Private equity firms always wants to hitch their wagon to strong companies in growth industries. Companies like GC Services are well positioned to capitalize on the expanding needs of credit grantors outsourcing non-core business functions.
We’ll be covering this topic in addition to many other current issues impacting ARM in 2016 during our free webinar on February 4th with Rozanne Andersen and our special guest, former chair of the Taxpayer Fairness Coalition, Randy Kamm. Register now and be a part of this essential discussion.