UK’s facilities management sector sees M&A activity rebound in 2012

The value of merger and acquisition (M & A) deals in the facilities management sector rebounded in 2012, according …

The value of merger and acquisition (M&A) deals in the facilities management sector rebounded in 2012, according to analysis from business and financial advisers Grant Thornton UK LLP.

Publicly recorded transactions in the sector totalled 95 deals, just shy of the 2011 total yet comfortably ahead of volumes seen in 2009 and 2010.

The value of these transactions surpassed the previous year’s total four-fold, with the disclosed deal values for the top 10 facilities management transactions totalling more than £3.4bn in 2012.

The total value and volume of M&A in the sector was boosted by a flurry of higher value deals in the latter half of the year, with blockbusters such as private equity heavyweight Terra Firma’s £3bn acquisition of Annington Homes seeing the largest value transaction in recent years.

Intersafe, which provides essential electrical testing for companies across the south and UK, spoke to expert Paul Stout, Associate Director of Corporate Finance at Grant Thornton in Southampton, about the results.

Paul said: “The facilities management sector has entered 2013 on a strong foot. Last year saw significant improvements in the performance, and subsequent valuations of FM companies and from what we’ve seen thus far, this momentum is likely to carry on throughout the year, fuelled predominantly by trade activity.

“Intersafe’s managing director, Adrian Pendle, added: “It will be interesting to see how this progresses throughout the year. Larger, quoted companies within our sector seem to be targeting markets further afield while we know there is still a lot of opportunity in the UK, despite the somewhat stagnant market.”