JSE-listed facilities management company Bidvest has acquired hygiene services company BIC Services from its private shareholders, effective from July 7, for A$160-million or about R1.8-billion.
The acquisition is firmly aligned to Bidvest’s stated strategic intent of expanding its international presence in facilities management, as well as hygiene services and the distribution of plumbing and related products.
The acquisition also meets Bidvest’s acquisition criteria, namely delivering a niche service with a strong innovation and sustainability underpin, and being a meaningful player in its chosen niche and geographic footprint, with the potential to scale further.
BIC Australia also has an entrepreneurial and passionate management team with deep industry experience and that is driven to grow the business; a strong cash flow conversion supported by an annuity, contractual income stream; and attractive, sustainable returns in a low-asset intensity business, Bidvest says.
The acquisition will be modestly earnings and returns accretive to Bidvest, the company adds.
BIC, which is headquartered in Sydney and operates across Australia, is a provider of niche integrated facilities management services across office, commercial and education sites. Its core cleaning service offering leverages an interactive technology solution and is augmented by a range of hygiene, waste, maintenance and other ancillary services.
BIC’s current management team has signed service agreements and remains committed to the business. BIC has a seasoned and commercially strong management team who have introduced innovative and enabling technology to drive value for all stakeholders and integrated sustainability efforts in the daily operations, Bidvest says.
“We are excited to have found a business and management team that I believe can contribute to advancing Bidvest’s international growth strategy and add value to a stakeholder base that now includes Australia,” says Bidvest CE Mpumi Madisa.
BIC employs nearly 2 500 people across 3 250 sites and its client base primarily comprises premium A-grade offices in New South Wales.
Since its establishment in 1989, BIC has developed a vertically-focused, client-centric business model supported by a Web-based reporting system that can be integrated into client systems and an interactive customer experience platform.