by Shane Henson — October 2, 2013—Merger and acquisition (M&A) activity in the facilities management sector has seen a strong run of activity, with the volume of deals in the first half of the year totaling more than 50 percent higher compared to the first half of 2012, according to analysis by business and financial advisers Grant Thornton UK LLP.
Per the company’s quarterly Insights into Facilities Management report, a total of 25 deals closed during the second quarter of 2013. Although marginally fewer than in the first quarter in 2013, the first half of the year still remains the most active period since 2008, the report notes.
Driven by activity among domestic businesses seeking to build scale through consolidation or plug gaps in their skill sets, the M&A market in the smaller and mid-market segments has seen considerable activity throughout the first half of the year.
The analysis also recognized continued interest from international buyers in the U.K. FM space. Although the number of international deals was down slightly from the first quarter of 2013, the potential for larger international acquisitions remains strong as non-U.K. businesses look to tap into the expertise of the United Kingdom’s highly developed players. Prominent international groups such as Ferrovial and Schneider Electric have all completed deals in the U.K. market, and Grant Thornton UK says it expects to see this trend continue in the second half of 2013.
The report also shows a shift towards activity in the “hard” FM space, which includes companies involved in the physical maintenance of buildings, including their electricity, mechanical, and landscape assets. This follows a period of activity dominated in the softer FM side, which covers areas such as catering, cleaning, and security. The maintenance and fit-out sector was especially active with a total of eight deals being recorded (including the Kier/May Gurney deal), the highest number recorded in one quarter since 2008, notes the company.
In addition to providing an overview of 2013 M&A activity, Insights into Facilities Management also provides a Quoted FM tracker and information on FM sector trends.
