The Spotless Group is continuing its acquisition spree announcing a conditional acquisition agreement for the purchase of Utility Services Group (USG) this week.
Operating under the Skilltech, Fieldforce and Utility Asset Management brands, Utility Services Group (USG) is Australia’s leading provider of retail meter reading and installation services in the electricity, gas and water sectors, and of end-to-end essential maintenance and inspection services in electricity distribution.
Spotless CEO and managing director, Bruce Dixon said the USG acquisition provides Spotless with a platform for growth in the utilities infrastructure sector. "This is a significant opportunity for growth for Spotless including the potential cross-selling of facilities services to USG’s government, council and corporate customer base," he said.
Spotless chair Margaret Jackson said it builds on the company's strategy of broadening its service capabilities. "We will continue to consider strategic acquisitions of high quality businesses that supplement our strong underlying organic growth and generate the best return for our shareholders," she said.
USG chair Mark Foley said Spotless is an iconic Australian company with a long and rich history of a strong service delivery culture to its many and varied customers. "We view this culture as closely aligned to our own and believe that this is a very positive event for our customers, management and employees alike," Foley said.
The transaction is expected to be completed by July 2015. The announcement comes only weeks after the Spotless Group finalised its acquisition of engineering firm AE Smith.
AE Smith has over 650 employees with annual revenues of more than $100 million.
Its capabilities include mechanical services, tri-generation, co-generation, refrigeration, energy-efficiency audits, commissioning, building tuning, energy optimisation technology, solar power, solar hot water, energy retrofits and HVAC.
The Spotless Group had revenues totalling $2.6 billion last year.