Annual Report 2006 ISS Global A/S

In 2006, ISS Global continued the pace of acquisitions
from the last two years in line with these three
priorities and the Group strategy. ISS Global completed
104 acquisitions in 36 countries, 91 of which
had estimated annual revenue of less than DKK 100
million. The acquisitions added annualised revenue
of approximately DKK 8.4 billion and around 64,000
employees to ISS Global during the year.
The activities acquired were diversified across all regions
of the world, in which ISS Global operates, and
covered all main business areas, Cleaning, Catering,
Office Support, Property Services, as well as Security
Services, which from 2007 will constitute the fifth
pillar of the IFS house. In addition, ISS Global acquired
several broad-ranged service companies.
Pegasus Security Holdings Ltd.
In January, ISS Global acquired Pegasus Security
Holdings Ltd. The acquisition added approximately
DKK 0.4 billion in annual revenue and approximately
1,600 employees to ISS UK. The acquisition supplied
ISS UK with a new business area, Security Services,
the fifth pillar of the IFS house, essentially making
the UK operations capable of delivering the full service
package on a national scale.
Tempo Services Ltd
In February, ISS Global acquired the outstanding
51% of the shares in the Australian company Tempo,
which were previously held by investors managed by
DB Capital Partners. The acquisition of Tempo
added approximately DKK 2.9 billion in annual revenue
as well as more than 17,000 employees to the
Group workforce. Representing annual revenue of
approximately 5% of Group revenue for 2006, the
acquisition was the second largest acquisition in ISS
Global history.
Essentially, the acquisition of Tempo led to a complete
transformation of ISS Australia, which was previously
a fairly small country operation primarily offering
pest control and washroom services. The acquisition
grew ISS Australia manifold in terms of revenue
and staff, expanded its service offering substantially
towards Integrated Facility Services and extended its
regional coverage to nationwide coverage.
Norfolk International Ltd.
In May, ISS Global acquired Norfolk in Israel, a catering
company specialising in institutional and inflight
catering. The acquisition added approximately
DKK 0.4 billion in annual revenue and approximately
1,700 employees. The acquisition doubled the annual
revenue of ISS Israel and gave the Israeli operations
a well-established business platform in the
catering segment.
Edelweiss Facility Management AG
In July, ISS Global acquired Edelweiss, one of the
largest Facility Services companies in Switzerland
ANNUAL REPORT 2006 / Company Report
with nationwide coverage. The acquisition added,
approximately DKK 0.7 billion in annual revenue.
The acquisition supplied the Swiss business with
an all-new platform within Integrated Facility Services.
DEBEOS GmbH
In November, ISS Global acquired DEBEOS, DaimlerChrysler
Objektmanagement und Service GmbH,
which was DaimlerChrysler’s internal Facility Services
company offering a range of services within
technical maintenance services, catering, internal
logistics, security, staffing etc. The acquisition
added annual revenue of approximately DKK 0.5
billion.
The acquisition is expected to increase annual
revenue in Germany by approximately 30% and
provided the German organisation with entirely new
capabilities and a strong platform within Integrated
Facility Services as well as new contracts with
large clients.
A full list of acquisitions is presented in note 11 to
the consolidated financial statements.
New geographies
During the last few years, ISS Global has entered
ten new geographies, including high growth countries
such as Russia, Turkey, India and Mexico,
while also significantly increasing investments in
China. It is part of the Group strategy to establish
operations in new geographies in order to pursue
business opportunities in markets, which are currently
characterised by relatively high growth rates,
and which are expected to deliver strong economic
growth and expanding markets in the future.
Consequently, most of the new geographies with
ISS Global operations are found in growth regions
like Asia, Latin America and Eastern Europe where
ISS Global intends to leverage on its competencies
and experience from its European platform. This
was also the case with the new geographies, in
which ISS Global set up a presence in 2006.
In May 2006, ISS Global established operations in
Mexico through a combined take-over of two cleaning
companies, San Rafael S.A. and Tap New S.A.
The acquisitions added annual revenue of approximately
DKK 0.3 billion and 9,500 employees
to ISS Global.
In July 2006, ISS Global expanded its Asian operations
into the Philippines through the acquisition of
the cleaning company Gayren Maintenance Services.
In the beginning of 2007, ISS Global set up
operations in Taiwan through two acquisitions.
7