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22 June 2018
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ATALIAN TO ACQUIRE SERVEST LIMITED

26 April 2018 | Herpreet Kaur Grewal


Independent provider of facility services, the Atalian Group announced earlier this month that it has agreed to acquire the entire share capital of Servest Limited.

 

The consideration for the acquisition included £457 million of enterprise value for Servest Limited and £83 million for Servest Limited's 28.8 per cent equity investment in Getronics Services UK Limited.

 

Servest Limited is a provider of facility management services in the United Kingdom with which the Atalian Group has had a commercial partnership, through a joint venture, since April 2016.

 

Servest Limited had total revenues of £456.8 million in the 12 months ended September 30, 2017.

 

The Atalian Group will enter into “a bridge facility loan to finance the transaction, which is intended to be replaced or refinanced with long-term indebtedness”.

 

As part of this transaction, the management of Servest Limited will invest a combined €37.0 million in La Financière Atalian S.A.S.

 

The consideration paid for Servest Limited also encompasses two companies currently being acquired by Servest Limited. The acquisition and the Servest acquisitions in progress are subject to customary closing conditions and are expected to be completed during the second quarter of 2018.

 

Servest Limited is a UK-focused provider of facility management services, including cleaning, contract catering and technical services, and has recently benefited from favourable market dynamics in the UK facility management services market.

 

The acquisition will provide the Atalian Group with a strategic foothold in the UK market and strengthen the international development of the Atalian Group.

 

Getronics Services UK Limited is a multinational provider of technology services (including software platforms, hardware sales, telecommunications solutions, and cloud services), providing workplace solutions for FM-specific products in the corporate, healthcare, and transport sectors, among others.

 

The investment in Getronics, through the Servest acquisition, will enable the Atalian Group to play a leading role in the workplace technology market and provide a seamless FM and innovative technology offering to its growing client base and comes at a time when workplace management is increasingly focused on digital transformation through the development of smart buildings and the Internet of Things.

 

The Atalian Group’s pro forma leverage is expected to increase to between 5.25x and 5.5x as a result of the Servest transaction. The Atalian Group plans to reduce its leverage to 4.5x in the short to medium term.