ISS has acquired the UK, Ireland and European activities of facilities company GSH
Jeff Gravenhorst, Group CEO, ISS A/S, said: “This is the right company in the right market at the right time for us.
“As previously stated, we will support our strategic progress by making selective competence-enhancing acquisitions.
“This acquisition will strengthen our ability to meet the increasing demand for integrated facility solutions where technical services is an important and deciding component for the customer in choosing the right partner.
Furthermore, the acquisition will enhance our offering in energy management which is an emerging demand from our customers.”
According to Financial Wired, enterprise value is £53 million of which £6 million is an earn-out to potentially be paid during H1 2015, in whole or in part, depending on the financial performance of the business.
With EBITA margins in excess of 8 per cent, the current margins of GSH are above ISS average.
The transaction will be funded through existing debt facilities and does not impact expected dividend payments from ISS for fiscal year 2014. The transaction is final and unconditional as of today.
“ISS is a perfect fit for our business. This transaction will improve the self-delivery of technical services within integrated facilities services contracts and provide our colleagues with substantial opportunities for career progression,” said Clive Clarke, UK & Ireland MD of GSH.