Bidvest buys Australian cleaning company for R1.8 billion

 ·7 Jul 2022

Listed services, trading, and distribution company, Bidvest, says it has acquired Australian cleaning specialist, BIC, for AUD160 million, approximately R1.8 billion.

The purchase is effective 7 July 2022 and will be settled from the group’s international bond proceeds raised in October 2021.

BIC, which is headquartered in Sydney and operates across Australia, was established in 1989 and 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 full range of hygiene, waste, maintenance and other ancillary services.

The company 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 is 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,” said Bidvest. The acquisition will be modestly earnings and return accretive to the group.

“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”, said Mpumi Madisa, Bidvest chief executive.

Bidvest said that the acquisition is aligned to its 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.

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