India’s leading Integrated Security & Facility Management Corporation – The Tenon Group, has announced that it has acquired Manchester-based Elite Cleaning & Environmental Services Ltd (“Elite”) in cash and shares. The company has invested about £4.5 million in the deal with an aim to broaden the client base in the UK.
The acquisition is expected to immediately enhance the earnings of the company and expand the company’s organic and strategic growth. Elite has a strong blue-chip client base, which is complementary to the company’s existing portfolio. In addition, once Tenon is fully integrated with Elite Cleaning & Environmental Services, existing infrastructure, numerous operational savings are expected.
Commenting on the acquisition Major Manjit Rajain, Group Chairman said: “We are delighted to strengthen our position within the UK market. This is a strategic move for the company to expand in the Facility Management domain by providing a 360-degree solution. Elite has a strong reputation and client base and it offers clear synergies with our existing operations and presents many cross-selling opportunities, as well as immediately enhancing the Group’s earnings. We are very excited by the wider market opportunities and ability to further drive profitability. I’m delighted to welcome the Elite team to our Group, as we look forward to creating an additional value for all our stakeholders, including our clients, shareholders and employees.”
The acquisition of Elite establishes Tenon as a credible player in the Facility Management in the European market and will benefit the clients on both domestic and international level. It will give the Company a competitive edge while allowing it to offer a range of services in the Integrated Facility & Security Management domain across multiple geographies. It will also create efficiencies that will provide flexibility for the company to invest in people, and in technology and products, as well as improve the company’s business profile.
Tenon is a profitably growing business, and the company is focused on expanding its geographical footprint through targeted acquisitions, organically. In 2015, the Tenon Group established its presence in the UK through the acquisition of O&G (now known as Tenon FM). In addition, the Company acquired a 51% majority stake in Singapore-based security company Frontline Security Pte. Ltd, and has an option to acquire an additional 25% within three years.
