FM services

Private equity firms have made significant acquisitions across Europe, from the £10 million investment in London Property Maintenance by Sovereign Capital, which will be used as a cornerstone investment in a ‘buy and build’, to the US$3.84 billion take-private of ISS backed by EQT and Goldman Sachs Capital Partners.

FM cleaning and manned guarding are relatively fragmented markets; electronic security (as provided by companies such as ADT) is a specialist sub-sector that offers higher growth and higher margins. The catering market is more concentrated and is led by large businesses such as Compass and Sodexo. In the textiles rental and hygiene services markets there are opportunities to grow in niches such as healthcare.

Another leading player in the facilities management market is the Nordic-based Coor Service Management business that was acquired by Cinven for €536 million in December 2007.