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.