Serco Group through its Australian subsidiary, Serco Group Pty Limited, has reached agreement to acquire Facilities First Australia Holdings Pty Limited (FFA).
The business is to be acquired for an enterprise value of A$76.5 million (£43 million), subject to standard net working capital adjustments, with the consideration to be satisfied from Serco’s existing debt facilities.
FFA is a specialist provider of cleaning, facility maintenance and management services to government; over 80 per cent of its revenues come from long-term government contracts and it has an order book of around A$434 million (£240 million). Its 2,500 employees and experienced management team bring to Serco new skills and reach in government facilities management, which is expected to see a significant amount of bidding opportunities in the coming years.
FFA’s revenue for the year ended June 2020 was A$282 million (£156 million), and Underlying Trading Profit was around A$11 million (£6 million).
Commenting on the acquisition, Rupert Soames, Serco Group Chief Executive, said: “This acquisition adds expertise and heft to our facilities management operations in Australia, while retaining our government focus. The combination of Serco and Facilities First will enable Serco Australia to target a significant pipeline of new opportunities which we expect to mature in the next few years. We welcome the employees and management of FFA as they join Serco and look forward to working with them as we further grow our Australian business.”
The acquisition has received Australian Foreign Investment Review Board approval and is expected to complete on 4 January 2021.