Spotless has signed a conditional acquisition agreement for the purchase of Utility Services Group Limited (USG). ‘USG is Australia’s leading provider of retail meter reading and installation services in the electricity, gas and water sectors, and of end-to-end essential maintenance and inspection services in electricity distribution,’ stated the 2 June announcement.
Spotless chief executive officer and managing director, Bruce Dixon, said; “The acquisition of USG is an exciting opportunity and provides Spotless with a platform for growth in the utilities infrastructure sector. USG has annual service revenues of over $200m and approximately 1,500 employees located throughout Australia. The acquisition will increase Spotless’ team to more than 38,000 employees, confirming Spotless’ position as one of the largest employers in Australia and New Zealand.
“The distribution and transmission industry in Australia is an extremely attractive industry for Spotless. With privatisation and competitive pressure likely to see increased outsourcing in the sector, we see this acquisition as a significant opportunity for growth for Spotless including in potential cross-selling of facilities services to USG’s government, council and corporate customer base,” Dixon added.
Spotless chairman Margaret Jackson also commented: “This outstanding acquisition builds upon our strategy of broadening and deepening our service capabilities and provides Spotless with a further platform for growth into technical services across a range of sectors.
“We will continue to consider strategic acquisitions of high quality businesses that supplement our strong underlying organic growth and generate the best return for our shareholders,” Jackson continued.
“Spotless is an iconic Australian company with a long and rich history of a strong service delivery culture to its many and varied customers,” remarked USG chairman Mark Foley. “We view this culture as closely aligned to our own and believe that this is a very positive event for our customers, management and employees alike.”
According to the announcement, the transaction is expected to complete by July 2015, subject to certain conditions being satisfied.