Danish facility management firm ISS Group to sell Thai unit for up to $150m

Denmark-headquartered facility services company International Service System (ISS) Group is seeking to raise $100-150 million by selling its Thailand operations, multiple sources aware of the development told DealStreetAsia.

It has received interest from a host of mid-market private equity (PE) funds looking for opportunities in Southeast Asia. It could attract local conglomerates as well, said one person.

The marketing process to sell ISS Group’s 100 per cent stake in ISS Thailand is believed to have started in the third quarter of 2019. Rippledot Capital is said to be the sell-side advisor for the proposed divestment process.

An email sent by DealStreetAsia did not elicit any response at the time of publishing this article.

ISS Group forayed into Thailand in 1985, where it is now operating as the market leader in facility management, primarily cleaning services.

According to the firm’s LinkedIn profile, ISS Thailand has more than 33,000 employees in the country, which makes it among the biggest players in the country.

If talks fructify, the transaction could be closed over the next two to three months, according to one of the sources.

The divestment of the Thai business is part of ISS Group’s strategic plan to sell operations in 13 countries, including the Philippines, Malaysia and Brunei Darussalam, according to reports in December 2018.

ISS Group is expected to keep its business in Singapore owing to the country’s stability and growing demand for facility services. The group entered Singapore in 1995 and currently has a headcount of over 7,000 employees.

ISS Group is understood to be looking at an annual organic growth of about 4-6 per cent by accelerating its transition towards key account customers.

ISS Group previously divested 100 per cent of its parking management business in Indonesia to local peer CentrePark Citra Corpora, as reported by DealStreetAsia in September 2019. ISS was a major player in the space, managing 130 parking areas throughout the archipelago via its subsidiary ISS Parking Management (IPM).

ISS Group was founded in Copenhagen, Denmark in 1901. The company clocked a profit of 402 million DanishKrone ($58 million) in the first half of 2019, according to an earlier press statement issued by the company.

Globally, ISS Group has more than 500,000 employees – it operates in over 77 countries across Europe, Asia, North America, Latin America and the Pacific.

 

 

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.