ISS acquires technical services business to enhance self-delivery of integrated facilities services

by Brianna Crandall — January 21, 2015—Global facilities services provider ISS has acquired the U.K., Ireland and European activities of U.K.-based GS Hall (GSH), which is a leading technical services company focused on mechanical and electrical engineering, energy management and compliance. Some 780 employees, including engineers and technicians, will transfer to ISS.

“This is the right company in the right market at the right time for us,” said Jeff Gravenhorst, Group CEO, ISS A/S. “As previously stated, we will support our strategic progress by making selective competence-enhancing acquisitions. This acquisition will strengthen our ability to meet the increasing demand for integrated facility solutions where technical services is an important and deciding component for the customer in choosing the right partner. Furthermore, the acquisition will enhance our offering in energy management, which is an emerging demand from our customers.”

“ISS is a perfect fit for our business. This transaction will improve the self-delivery of technical services within integrated facilities services contracts and provide our colleagues with substantial opportunities for career progression,” said Clive Clarke, U.K. and Ireland managing director of GSH.

A market worth over DKK 1 trillion

Established in 1895, GSH has a rich heritage and a strong position in the mechanical and electrical services market in the U.K., where it has focused on the self-delivery of services to key accounts in, among others, the business service and IT, and retail and wholesale customer segments.

“GSH and its management team have an excellent strategic fit with our existing U.K. IFS and technical services business and we expect to achieve both revenue and cost synergies. A strengthened foundation in the U.K. will also facilitate the scaling of technical capabilities across Europe, thus enhancing further growth opportunities in our existing technical services business on the continent,” said Henrik Andersen, Group COO of Europe, Middle East and Africa.

“Technical services is becoming a central part of integrated facilities services, and the technical services market in Europe is estimated to be worth over DKK 1 trillion where customers increasingly look across borders and continents for coverage. This transaction will provide good growth opportunities in this market,” the Group COO added.

First major acquisition since 2010

ISS has not made any significant acquisitions since 2010 and during that time has divested non-core activities. Gravenhorst commented, “As outlined in connection with the IPO in early 2014, we have a business strategy which includes selective competence enhancing acquisitions subject to tight strategic and financial filters. One of our focus areas is technical services, and with its heritage, technical self-delivery capabilities, customer focus, and ability to supplement our existing successful IFS and technical services business, GSH is a good fit. Our initial discussions with customers of GSH and ISS support this.”

ISS provides facilities management, cleaning, office support, catering, and security services to more than 53 countries around the world. For two years in a row (2013 and 2014), The International Association of Outsourcing Professionals (IAOP) ranked ISS as #1 on its list of the world’s best outsourcing service providers—The Global Outsourcing 100.