JSE-listed Bidvest has entered into an agreement to acquire 100% of Ireland-based integrated facilities management group Noonan from Alchemy Partners and Noonan’s current management team for an enterprise value consideration of R2.7-billion.
Noonan operates in Ireland and the UK, where 40% of its revenue is derived, and boasts 13 000 employees delivering integrated management services, from cleaning and security to building services and facilities management in various jurisdictions.
“This is an exciting and groundbreaking acquisition for Bidvest. Following the unbundling of our food services business last year, we have said that we intend pursuing a strategy of acquisitions that will provide geographic diversification for certain of our core businesses,” explained Bidvest CEO Lindsay Ralphs in a statement on Monday.
The acquisition will expand Bidvest’s presence beyond South Africa in a niche, asset light business that will benefit from Bidvest’s capabilities and expertise, and complement Bidvest’s Services division.
The purchase price will be settled by way of foreign credit facilities.
“Three-year, variable rate, euro-denominated funding has been secured at an attractive rate,” Bidvest noted.
Subject to South African Reserve Bank approval, Bidvest hopes to close the transaction by August 31.