Merak Holdings acquires Glen Cleaning

Merak Holdings (NI) Ltd, led by Chairman Dave Seaton, has successfully acquired WWH Rosie Ltd, the holding company of Bristol based cleaning specialist Glen Cleaning, from its founder Iain Lewis.

The leading advisor in the cleaning sector, UK FM merger and acquisition specialist, Morphose Capital Partners advised Merak throughout the process leading to deal completion mid-July.

The deal was led by former CEO and Chairman of Resource Group The UK and Irish support services group, Dave Seaton, with the intention of using the teams’ broad industrial expertise and networks to drive to drive organic growth of the combined group. All management, with the exception of Mr. Lewis remain in their current roles and will be further supported by a new Managing Director. The strategic acquisition with its well-earned reputation for client service provides Merak with a platform in the cleaning sector from which to grow, potentially through acquisition should an appropriate opportunity present themselves.

Dave Seaton, Chairman of MERAK Holdings (NI) Ltd. thanked his financial partners, White Rock Capital Partners and Aldermore Finance and commented that:

“it was a pleasure working with Mr. Lewis on the transaction and the business is testament to the many years he has invested in building a strong and robust business which we believe is ready to take on the next stage of its evolution through measured and focussed growth.”

Morphose Managing Director Nick Atherton commented:

“It has been a pleasure working with Dave and his team. We wish them every success in growing their business.”

CleanKing acquires Millards Cleaning

Farnham based CleanKing has successfully acquired London based Cleaning service provider, Millards Cleaning, from its founders, John Booth and Mike Dickens.

The UK FM merger and acquisition specialist Morphose introduced the parties earlier this year and the deal completed last Friday.

The senior management team at Millards will continue to manage the business. CleanKing will use its broad industrial expertise and networks to drive both the organic and acquisitive growth of the combined Group. The strategic acquisition provides CleanKing with a proper central London footprint in the sector.

Commenting on the transaction, Paul Hillman said:

“We are very pleased with the purchase of Millards. This acquisition process has been exemplary and Morphose continue to prove their value by introducing complimentary parties.”

Morphose Managing Director Nick Atherton commented:

“It has been a pleasure working with the CleanKing team. We wish them every success in developing their UK business offerings.”

Stanley Security acquires Contract Fire Systems Limited

US based Stanley Security has successfully acquired Birmingham based fire and security service provider, Contract Fire Systems (CFS), from its founders, Gary Quirke and Steven Quirke.

The UK FM merger and acquisition specialist Morphose introduced the parties earlier this year and the deal completed last Friday.

The senior management team at CFS will continue to manage the business. Stanley Security will use its broad industrial expertise and networks to drive both the organic and acquisitive growth of the combined Group. The strategic acquisition provides Stanley with a proper UK national footprint in the fire and security sector.

Commenting on the transaction, Gary Quirke said:

“We are very pleased with the sale of CFS. This acquisition process has been exemplary and Morphose continue to prove their value by introducing complimentary parties.”

Morphose Managing Director Nick Atherton commented:

“It has been a pleasure working with the Stanley Security team. We wish them every success in developing their UK business offerings.”

Boston Networks acquires PEL

Boston Networks, a portfolio business of Aliter Capital, has successfully acquired South-East based sound, fire, security and audio visual (AV) soultions company PEL, from its founders Kenneth Faulks and David Jarman.

The UK FM merger and acquisition specialist Morphose introduced the parties earlier this year and the deal completed last Friday.

The senior management team at PEL will continue to manage the business and work alongside Scott McEwan, CEO of Boston Networks. Aliter Capital will use its deep industrial expertise and broad networks to drive both the organic and acquisitive growth of the combined Group.

 

Commenting on the transaction, Greig Brown, partner of Aliter Capital said:

“We are very pleased with the acquisition of PEL. This acquisition process has been exemplary and Morphose continue to prove their value by introducing complimentary parties.”

Morphose Managing Director Nick Atherton commented:

“It has been a pleasure working with the Boston Networks and Aliter Capital teams. We wish them every success in developing their business.”

CARILLION’S BUSINESS HAD GROWN ‘TOO DIVERSE’

Dave Wilson,  non-executive director with Morphose, said that it was “obvious for some time” that Carillion’s business had become “too diverse”.

“The FM part in particular was not core to their main construction offer, but was, in my opinion, a sound operation with good people and systems. 

“It is possible – but I have no direct knowledge of this – that bidding has been too aggressive. I think that is a problem which is quite widespread in the industry as businesses chase sales and market share in a relatively stagnant market.

“From an FM perspective, this is symptomatic of a problem with the tendering process, especially in the public sector, which still gives too much weight to price and not enough to quality or business sustainability.

“I would be surprised if there weren’t potential buyers for the FM business which, the last time I looked, was well run and had good products and service in some market niches. There are some fairly obvious potential buyers for a business with a strong technology sector record and some interesting public sector contracts. Might a management buyout of the FM business, as a whole or in parts, be viable?”

Joanna Lloyd-Davies, principal at JLD Consultants Limited, called the situation “horrendous” and “a great shame”.

She told FM World: “It must have been a very difficult time for those in charge to pull the plug.”

“We’ve got to look after the people, we have got to protect the reputation of the industry and we have got to hope to God that this doesn’t happen again.”

Lloyd-Davies worked in business development at Tarmac, which rebranded as Carillion in 1999 to place greater emphasis on its services provision. She recounted: “We started all the hospital PFI contracts. We were doing great things that would be good for the UK’s healthcare.”

“We have to show the world that one company has gone down, but this isn’t the state of all companies in the industry.

She said: “The main lessons we should learn are corporate responsibility, delivering according to the agreed contract and properly bidding on contracts.”

She added: “It’s going to make everyone wiser and more alert. We have to make sure we are running sensible businesses and delivering appropriately.”

Consultant Martin Pickard focused his attention on the likely impact of Carillion’s crash on its many sub-contractors, in particular the issue of suppliers forced onto more onerous payment terms last year.

“Government should learn to utilise all of the facilities management supply chain and not give all its work to a chosen few,” said Pickard. “Also, companies should finally learn that aggressive accounting and commercial practises will kick you in the butt eventually. Forcing your sub-contractors onto 120 day terms only provides a short-term fix to your cash problems but guarantees resentment and non-cooperation.”

Pickard also emphasised the problem of organisations too often letting their FM contracts drift ‘out of mind’.“

“Clients – including governments – must learn that outsourcing doesn’t transfer all risks, and both parties need to play an active role in facilities service management.”

Jeremy Waud, chairman of Incentive FM Group, called Carillion’s collapse a “sorry but rather predictable tale and a lesson to many of us”.

“Ultimately, its collection of banks did not have the courage to lend good money after bad and refused further funding – albeit the Government doesn’t seem to have been too bothered by the issue if they kept on awarding contracts to them up until recently.”

Waud is saddened by the end to such an established name in the sector.

“Carillion has a rich and lengthy history in construction and a long association with the FM sector which predates the demerger of Carillion from Tarmac in 1999. I recall Tarmac TFM in the late 1980’s  – pioneering days of facilities management in the UK.

“It appears that the damage done to this once great and proud name has been largely inflicted from the construction sector and hence has little to do with FM services. These contracts are inevitably large, complex and risky – something it seems the company didn’t fully or accurately disclose in its financial reporting to shareholders and funders.

“What is perhaps of more interest to us in the FM sector is what will happen to the hundreds of FM contracts it is engaged in. Although almost exclusively public sector, I am sure that while some may go back in-house, others will need to find new suppliers.

Waud also questioned whether Serco may now be wondering why they recently paid £50m for Carillion’s NHS contracts, “which would now perhaps be available on the cheap from the liquidator?”

Source: FM-World

 

Edwin James Holdings Ltd acquires PEME

Edwin James Holdings (“EJH”), a portfolio business of Aliter Capital, has successfully acquired Peterborough-based mechanical and electrical maintenance provider, PEME from its founders, Ashley Maile, Darren Martin and Ian Morris.

 

The UK FM merger and acquisition specialist Morphose introduced the parties earlier this year and the deal completed last Friday.

 

PEME are an industry leading asset care provider, working to improve clients’ maintenance and engineering compliance through a blend of asset care, plant maintenance, engineering compliance, reliability improvement and condition monitoring.

 

Commenting on the transaction, Billy Allan, founding partner of Aliter Capital said:

“We are very pleased with the acquisition of PEME. This acquisition process has been exemplary and Morphose continue to prove their value by introducing complimentary parties.”

 

Morphose Managing Director Nick Atherton commented:

“It has been a pleasure working with the EJH and Aliter Capital team. We wish them every success in developing their business.”

Incentive acquires Weston Electrical Services

Incentive FM Group has successfully acquired Somerset-based electrical maintenance provider, Weston Electrical Services (WES) Ltd from its founders, Ian Rogers, John Rogers and Linda Rogers.

 

The UK FM merger and acquisition specialist Morphose brokered the deal, which completed today. Morphose have successfully advised on a fourth bolt-on acquisition for Incentive FM Group, with the purchase of the electrical maintenance business in Weston Super Mare. WES adds around £10m of turnover to Incentive Tec, the group’s M&E business, lead by Chris Windass.

 

Weston Electrical Services Ltd. is an electrical and mechanical contractor providing commercial, industrial and domestic services. This acquisition provides Incentive FM Group with improved coverage in the South West region, further improving their geographic offering.

 

Incentive FM Group’s trading companies provide services in the areas of; Facilities Management, M&E installation and Maintenance, Cleaning, Security and Consultancy. The business is located in London and has a run rate turnover in excess of £120m.

 

Commenting on the transaction Chris Windass, Director of IFM’s M&E division said:

“Morphose provided invaluable support to us throughout the deal. They quickly pulled together historical information and key metrics before working with management to develop financial forecasts. Our trust in their capabilities allowed us to proceed with confidence throughout the transaction.”

Morphose Managing Director Nick Atherton commented:

“It has been a pleasure working with Chairman Jeremy Waud and CEO Martin Reed as the business expands. We wish them every success in developing their business.”