Enhancing its ‘technical capability’, Spotless has reported (31 October) it had signed a conditional acquisition agreement for the purchase of the customer contracts and associated assets of ACG – a national security business with turnover of more than $80 million annually.
“This is an exciting and important strategic acquisition, which will substantially increase our technical capability in a rapidly growing industry,” said Spotless chief executive Bruce Dixon.
“Over the past two years, Spotless has increased its presence in the outsourced facilities management segment and is often asked to provide security services as part of its overall service offering.
“The acquisition of key security contracts and assets will allow Spotless to provide security services to new and existing clients directly, enhancing Spotless’ position as a market leading provider of integrated services.”
The transaction is expected to complete in November 2014, subject to certain conditions being satisfied, including the transfer of customer contracts (many of which are existing Spotless customers). Following completion, the business will be rebranded within the Spotless Group and more than 1,500 new employees will be added to Spotless’ existing 33,000 strong workforce.
Spotless chairman Margaret Jackson observed, “This represents a great opportunity for Spotless to broaden its reach and expand its service offering to clients. The acquisition will be immediately EPS accretive and funded entirely from cash resources – demonstrating the company’s strong operating cash flow and our ability to self-fund our growth.
“We believe the fastest and most sustainable way to supplement our strong underlying organic growth is via strategic acquisitions of high quality, market-leading businesses.
“Spotless is focused on allocating capital to opportunities that generate the best returns for our shareholders and the Board is committed to striking the right balance between disciplined investment, strengthening our balance sheet and providing returns to shareholders via dividends,” she explained.