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KBS Announces Recapitalization

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KBS, a facility services provider, receives a recapitalization from KKR, Ares Management, and Blackrock. The investment aims to enhance go-to market capabilities and service delivery. The Company offers technology-enabled facility management services across various sectors in North America.
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The recapitalization of KBS by KKR, Ares Management and BlackRock signals a strategic move aimed at bolstering the company's market position. This influx of capital from prominent investment firms is indicative of their confidence in KBS's business model and its potential for long-term growth. From a market perspective, this could enhance KBS's competitive edge in the facility management sector, especially given the emphasis on technology-enabled services which are increasingly in demand.

Investors might view this recapitalization as a positive development, likely to lead to an expansion of KBS's service offerings or an improvement in operational efficiency. The involvement of established firms like KKR, Ares and BlackRock also suggests a level of operational and financial discipline that could be beneficial to KBS's clients and stakeholders. The potential for cost reduction and quality improvement in services could translate into increased client satisfaction and retention, a important factor in the facility services industry.

Recapitalization typically involves restructuring a company's debt and equity mixture to stabilize its capital structure and often to fund growth initiatives. The participation of heavyweight investors like KKR, Ares and BlackRock usually comes with a strategic vision for scaling the business. For KBS, this could mean an aggressive push into new markets or the development of new technology platforms that drive efficiency.

From a financial standpoint, the impact on KBS's balance sheet could be significant. The recapitalization could improve leverage ratios and provide more favorable terms for debt, which in turn could lead to improved credit ratings and lower cost of capital. This financial restructuring might also signal potential future public offering plans or significant corporate transactions that could reshape KBS's market dynamics.

With the transition to majority equity holders, KKR, Ares and BlackRock will likely exert considerable influence over KBS's strategic decisions. This could involve changes in governance structures and possibly shifts in the company's strategic direction. One area of interest will be how this recapitalization affects existing contracts and client relationships, as well as how KBS manages its compliance and regulatory obligations amid growth.

Additionally, the recapitalization may come with specific terms and conditions that could impact KBS's operational autonomy. It's important to consider the legal implications of such investment agreements, including any clauses that may affect KBS's ability to make independent decisions or enter into future business arrangements.

New Investment from KKR, Ares Management and Blackrock Positions Company for Long-
Term Growth

OCEANSIDE, Calif., March 25, 2024 /PRNewswire/ -- KBS, a leading privately held facility services provider in North America, announced today a recapitalization by investment funds and accounts managed by its long-time investors KKR ("KKR"), Ares Management ("Ares") and Blackrock Capital Investment Advisors, LLC or affiliates thereof ("BlackRock"), which will become majority equity holders in the Company.

The new investment will support the Company's ability to invest further in go-to market capabilities and the delivery of high-quality service to its customers.

Headquartered in Oceanside, California, KBS is a leading provider of technology-enabled, integrated facility management services to clients across North America. With its differentiated technology and comprehensive suite of facility services, the Company delivers high-quality and cost-effective solutions to clients in the industrial, commercial, logistics, retail, and grocery sectors.

"Having the support of KKR, Ares, and BlackRock positions KBS with unmatched strategic capacity and further enables the acceleration of value creation at scale," said Mark Minasian, CEO of KBS.  "We look forward to working closely with these investors, leveraging their deep experience in this next phase of development, while always ensuring we continue to deliver outstanding service that raises standards and lowers costs for our clients."

"We are pleased to support Mark and the KBS team in this recapitalization, which will position the business for its next chapter of growth," said Lauren Krueger, a Managing Director in KKR's credit business.

"We are excited to help provide KBS with the additional capital needed to help accelerate its growth while ensuring it continues to provide market leading service to all of its customers," said Adam Ferrarini, a Partner in Ares' Credit Group.

About KBS
KBS is a trusted partner to leading operations and facility managers across more than 100,000 client locations throughout North America. We provide essential facility services that deliver healthy operations to businesses through scalable solutions customized to meet client-specific requirements. Our expertise and technology enable our teams to anticipate issues, ensure quality, and maximize efficiency. With decades of experience, KBS is committed to helping clients raise standards and lower costs with the latest advances for maintaining healthy and safe operations. Visit www.kbs-services.com for more information.

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 Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of December 31, 2023, Ares Management Corporation's global platform had approximately $419 billion of assets under management, with approximately 2,850 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

Media Contact:
Erik Bratt
erik.bratt@kbs-services.com

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/kbs-announces-recapitalization-302097378.html

SOURCE Kellermeyer Bergensons Services LLC

FAQ

What investment firms participated in KBS's recapitalization?

KKR, Ares Management, and Blackrock were the investment firms involved in KBS's recapitalization.

What is the headquarters location of KBS?

KBS is headquartered in Oceanside, California.

What services does KBS provide?

KBS offers technology-enabled, integrated facility management services to clients in industrial, commercial, logistics, retail, and grocery sectors.

Who is the CEO of KBS?

Mark Minasian is the CEO of KBS.

What is the goal of the new investment in KBS?

The new investment aims to support KBS in investing further in go-to market capabilities and delivering high-quality service to its customers.

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ares management, l.p. is a publicly traded, leading global alternative asset manager with approximately $106 billion of assets under management,* and more than 15 offices in the united states, europe, asia and australia.* since its inception in 1997, ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. ares believes each of its distinct but complementary investment groups in credit, private equity and real estate is a market leader based on assets under management and investment performance. ares was built upon the fundamental principle that each group benefits from being part of the greater whole. for more information, please visit www.aresmgmt.com. * as of december 31, 2017, aum amounts include funds managed by ivy hill asset management, l.p., a wholly owned portfolio company of ares capital corporation and a registered investment adviser.