Standard Parking Corporation, one of the nation’s leading providers of parking management, ground transportation and other ancillary services, today announced that it has closed its merger with the parent of Central Parking Corporation, which is now a wholly-owned subsidiary of the Company. In connection with the merger, the Company today issued 6,161,334 shares of common stock to the stockholders of the parent of Central Parking.
With the completion of the merger, the Company’s combined location base expands to more than 4,200 parking facilities containing over 2.2 million parking spaces in hundreds of cities across the U.S. and Canada, effectively doubling its size.
“We’re excited about today’s closing, and now can look forward to the long-term opportunities that the merger creates for our Company,” said James A. Wilhelm, Standard Parking’s President and Chief Executive Officer. “By blending the best of both companies, we’ll be able to enhance the suite of services and products we provide to our clients and customers. We believe we’re now positioned to become the preferred provider of outsourced parking facility management, ground transportation maintenance, travel demand management and security services to commercial, institutional and municipal clients.”
Robert S. Roath, Standard Parking’s Chairman, said, “We’re thrilled to be able to finally start working with Central Parking’s team of professionals to create additional value for our clients, customers and stockholders.” Gordon H. Woodward, Kohlberg & Company’s Chief Investment Officer and, along with Paul Halpern and Jonathan Ward, a new member of Standard Parking’s expanded Board of Directors, added, “The leadership teams from both companies have made excellent progress in laying the foundation for an effective, smooth integration. We look forward to the Company’s exciting future as the integration is completed and beyond.”
The Company will continue to conduct operations using the existing Standard Parking and Central Parking brands while a thorough evaluation of the go-forward brand strategy is conducted.
Standard Parking also announced that effective as of today’s closing, Marc Baumann, its Chief Financial Officer, has assumed the additional role of President of Urban Operations. Reporting to Mr. Baumann in this new role will be four Executive Vice Presidents of Operations — Edward Simmons, Steven Warshauer, Daniel Huberty and Robert Toy. Mr. Simmons and Mr. Warshauer, who have 45 and 34 years of parking industry experience, respectively, have served in their current roles with Standard Parking for more than 10 years. Mr. Huberty and Mr. Toy, each with more than 15 years of parking industry experience, join the Company from Central Parking.
“Marc’s leadership as our CFO over the past twelve years has been critical to our success. With his new responsibilities, Marc will play a key role in helping us achieve our post-closing goals and position the Company for long-term success,” said Mr. Wilhelm.
Reporting directly to Mr. Wilhelm will be John Ricchiuto, Standard Parking’s Executive Vice President of Airport Operations, and William Bodenhamer, Jr., President and CEO of USA Parking Systems, a valet service provider that specializes in the hospitality industry. USA Parking Systems will continue to operate independently as a wholly-owned subsidiary of Central Parking.
In addition, the Company announced that Mark A. Janek has joined Standard Parking as Senior Vice President of Finance. Mr. Janek previously served as Vice President of Finance at Matson Logistics, a leading provider of multimodal transportation, warehousing and distribution services, as well as Corporate Controller of the Hub Group, a publicly traded transportation management company. Along with Daniel R. Meyer, the Company’s Senior Vice President and Corporate Controller, Mr. Janek will report directly to Mr. Baumann to support Mr. Baumann in his continuing role as CFO.
The Company reiterates its previously announced integration and financial targets. Standard Parking currently expects to generate annual run-rate cost synergies in excess of $20 million by the end of the second year after closing. The Company also expects that its free cash flow should enable the Company to reach a debt coverage ratio of 2.5x within three years, consistent with the Company’s long-term objective of achieving debt levels similar to those of companies having investment grade ratings.