Wednesday, November 26, 2014
Inquirer Daily News

Philly investors sell Central Parking

Ira Lubert a winner as Standard Parking buys 2,000 garages, 45 in Center City and other Philly-area neighborhoods

Philly investors sell Central Parking

Two Philadelphia buyout funds that manage money for state retirees, and their investment partners,  are selling a company that runs 45 Philadelphia-area parking garages and more than 2,000 others nationwide in a deal worth around $350 million.

Standard Parking Corp., a publicly-traded company based in Chicago, will pay $27 million in cash over a three-year period, plus Standard shares worth $110 million at recent prices, and assume $210 million in debt, to acquire Nashville-based Central Parking Corp. from Lubert-Adler Partners LP and Versa Capital Management LLP, and Kohlberg & Co., Central's major owners.

The deal includes garages Central Parking operates at 1500 Market, 1616 Sansom, 1500 Locust, and other Center City locations. 

As the Nashville Post notes here, the investors paid $700 million for Central Parking in 2007, but previously sold its New York and foreign operations. 

The combined companies will employ over 20,000 and manage more than two million parking spaces nationwide. Standard isn't active in Philadelphia, but it manages lots for Transit of New Jersey and other public agencies in many states.

The Lubert-Adler and Versa funds are both backed by Philadelphia real estate and casino investor Ira Lubert; both funds' investors include the $25 billion-asset Pennsylvania State Employees' Retirement System. Philadelphia-based law firm Klahr Harrison Harvey Branzburg LLP advised Lubert-Adler on the deal; New York's Sullivan & Cromwell LLP advised Versa.

A consortioum of banks led by Bank of America Merrill Lynch, Wells Fargo and JPMorgan Chase is lending up to $450 million to finance the deal. Standard boss James Wilhelm said in a statement he hopes to chop "at least $20 million" from the companies' expenses as the eal closes, including a "headcount reduction" of "less than two percent." 

Wilhelm will run the combined companies; Central boss James A. Marcum will serve as chief operating officer.

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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