Bidvest Acquires Australian Cleaning Services Company BIC Services
Bidvest Acquires Australian Cleaning Services Company BIC Services. Bidvest is pleased to announce that it has acquired 100% of B.I.C. Services Pty Limited (“BIC”) from its private shareholders, effective 7 July 2022. BIC’s current management team has signed service agreements and remains committed to the business. The Acquisition is for an enterprise value consideration of AUD160 million, approximately R1.8 billion, and will be settled from the Group’s international bond proceeds raised in October 2021.
BIC, which is head quartered in Sydney and operates across Australia, was established in 1989 and is a leading 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 full range of hygiene, waste, maintenance and other ancillary services.
BIC employs almost 2,500 people across 3,250 sites and its client base primarily comprise premium A-grade offices in New South Wales. Over the years, 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. 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. The Acquisition of BIC 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.
It also meets Bidvest’s acquisition criteria which are: Delivering a niche service with a strong innovation and sustainability underpin; Being a meaningful player in its chosen niche and geographic footprint with the potential to scale further; An entrepreneurial and passionate management team with deep industry experience and driven to grow the business; Strong cash flow conversion supported by an annuity, contractual income stream; and Attractive, sustainable returns in a low-asset intensity business.
