Pune-headquartered facility management services provider CLR Facility Services Pvt. Ltd has acquired a majority stake in Mumbai-based DK Hospitality Pvt. Ltd, a company statement said.
The financial details of the deal were not disclosed.
“DK Hospitality has a strong customer base in healthcare and information technology-enabled services which is complementary to our existing portfolio,” CLR Facility Services said in the statement.
The acquisition will strengthen the market position of CLR Facility Services in western India.
Mumbai-based Proficio Advisors acted as the financial adviser to DK Hospitality on this transaction.
Incorporated in 2004, DK Hospitality was founded by D K Shetty. It offers catering and facility management services. It also provides commercial cleaning and housekeeping services to customers in IT/ITES, corporate offices and the healthcare sector. The company’s workforce comprises more than 2,000 people across Mumbai, the statement said.
For the financial year through March 2017, DK Hospitality’s total income stood at Rs 25.76 crore, which was up from Rs 23.18 crore in the previous financial year, according to VCCEdge, the data intelligence platform of News Corp VCCircle.
Incorporated in 2008, CLR Facility Services provides integrated facility management and staffing solutions. It employs a workforce of more than 10,500 people.
The company said that it is projecting to generate consolidated sales of Rs 225-250 crore for the financial year through March 2019.
In January this year, homegrown private investment firm IndiaNivesh Fund had picked up a minority stake in CLR Facility Services for an undisclosed amount.
In January 2017, it had acquired a majority stake in Mumbai-based Right Resources Corporate Services Pvt. Ltd.
Deals in facility management services
In April 2017, private equity firm Samara Capital had acquired Sanjay Maintenance Services Pvt. Ltd through a management buy-in led by former executives of ISS Facility Services India Pvt. Ltd. The deal was done by setting up an investment platform from the target company.
In February 2017, Chennai-based integrated facilities management services firm Updater Services Pvt. Ltd raised Rs 100 crore from Motilal Oswal Private Equity in return for a minority stake.