Facility management and security services provider Tenon Group said on Wednesday it has acquired UK-based Elite Cleaning & Environmental Services Ltd to broaden its client base in that country.
The cash-and-stock deal is worth about £4.5 million ($5.8 million), the Indian company said in a statement. The acquisition is likely to boost earnings and complement its portfolio, it added.
“This is a strategic move for the company to expand in the facility management domain in the UK by providing a 360-degree solution,” said Manjit Rajain, Tenon Group’s chairman.
“Elite has a strong reputation and client base and it offers clear synergies with our existing operations and presents many cross-selling opportunities, as well as immediately enhancing the group’s earnings,” he added.
Tenon has presence across six countries. In India, it has 71 branches that employ around 55,000 employees who cater to 1,800 companies.
The acquisition of Elite is the third overseas takeover deal by Tenon in less than two years. In 2015, it bought UK-based facility management service company Office & General Group Ltd for £6.5 million.
Also in 2015, it bought a 51% stake in Singapore facility management and security services provider Frontline Security for Rs 19 crore ($2.8 million then).
The company is looking at acquiring companies across markets to strengthen its position. It has initiated talks with three target companies for acquisition and aims to seal the deal with one of them this financial year, the statement said.
Tenon is also planning to list on stock exchanges. Its holding company, Mortice Ltd, is listed on the junior bourse of the London Stock Exchange.
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