We’re pleased to announce our acquisition of Birmingham-based Fidelis Contract Service Ltd, as part of our value-accretive growth strategy.
Every growth strategy takes part in stages, and we’re delighted to unveil the next phase of ours. We recently completed the acquisition of Fidelis Contract Services Ltd, a successful commercial cleaning, hygiene and facility support services company. Headquartered in Birmingham, Fidelis provides services to customers across England and Wales. This maiden acquisition is expected to be immediately earnings enhancing. It delivers a significant increase in the scale of our commercial cleaning and hygiene services offering. And it represents an important step in our stated growth strategy.
Fidelis stays true to its wide spread of cleaning contracts
Fidelis was founded by Lloyd Ansermoz over 10 years ago and is headquartered in Birmingham. The company provides quality contract cleaning and hygiene services, ranging from daily housekeeping and washroom hygiene services through to building and caretaker services. It also covers specialist services such as kitchen and duct cleaning, industrial deep cleaning, pest control, and barrier matting for flooring. And it’s got particularly strong credentials in the education and healthcare sectors, and associated industries. Lloyd will remain a shareholder in the enlarged business and, along with his colleagues at Fidelis, is an integral part of the management team going forward.
High levels of recurring revenues for Fidelis provide clear visibility of future revenues and income: 87% of revenues in the financial year ended 31 March 2020 (“FY 2020”) were recurring in nature. Indeed, contracted maintenance cleaning accounted for a significant proportion, with a small element from contracted reactive cleaning. The company boasts largely long-term contracts of 3-5 years in duration, with a strong track record of contract renewals and long-term customer relationships. What’s more, Fidelis enjoys a wide spread of customers, with no one customer generating more than 8% of revenues, and the top 10 customers representing some 50% of total revenues in FY 2020.
REACT’s maiden acquisition puts the Group in a better position
This is a maiden acquisition for REACT and is an important step in our stated strategy to grow organically and through targeted value-accretive acquisitions. The two businesses offer a blend of revenues and margins, with expertise and operational strength in our respective specialisms. And what brings us together further is quality service provision in sectors strategically important to both companies. Particularly in sectors such as education and healthcare, Fidelis commands higher than average margins for contracted maintenance cleaning. Fidelis’s predominantly contracted maintenance work complements REACT’s focus on reactive work. This will allow for cross-selling opportunities to both sets of customers.
Mark Braund, Executive Chairman of REACT, commented:
“We are delighted to announce the acquisition of Fidelis, our maiden acquisition and an important milestone in our stated goal to become the country’s most trusted name in the provision of specialist cleaning, decontamination and hygiene services. The acquisition is expected to be immediately earnings enhancing and leaves REACT well positioned to continue to increase market share. The combination of our recent organic growth and the Fidelis acquisition leaves us well positioned to deliver material growth in the current financial year. We welcome Lloyd and the Fidelis team into the REACT group and look forward to working with them.”
You can read full details of REACT’s maiden acquisition in the RNS news feed on our website.
To find out more about REACT Group plc and our specialist cleaning business, contact one of the team today.
Post by Shaun D. Doak
Shaun is the CEO of REACT Group plc., a business dedicated to specialist cleaning, hygiene and decontamination. He is deeply committed to making sure that every one of our company’s clients receives the highest possible level of service. An expert in HVAC and commercial and industrial cleaning methodologies, Shaun has extensive experience in the facilities management and renewable services sector.