Tilbury chairman and chief executive Mike Bottjer said the purchase would double the size of Tilbury鈥檚 facilities services arm, taking its turnover from 36% to 50% of the group total. The portion of Tilbury鈥檚 annual operating profit derived from services activity will also leap from 60% to 75%.
However, some jobs will go as Tilbury continues its move away from high-risk, low-margin contracting 鈥� a strategy that prompted the 拢48m purchase of facilities management group How, in May 1998.
Bottjer said: 鈥淭he kind of business Bandt does gives us better margins, better visibility of earnings, longer term workloads and recurring revenues.鈥� In recent years, Bandt has focused on two core activities. FK Multiservices provides a range of services including industrial cleaning and painting to the petrochemical, pharmaceutical, food and manufacturing sectors. The other arm, Kwikform, is a scaffolding, formwork and falsework solution supplier.
Bandt believes the deal will allow it to capitalise on growth opportunities, particularly in industrial services. 鈥淚n recent years, Bandt has been transformed both in trading and financial terms,鈥� said Bandt chairman Bill Andrews. 鈥淚t is now at a stage where it will benefit from being part of a larger international group.鈥� The acquisition of Bandt adds industrial sector support services to Tilbury鈥檚 mechanical and electrical maintenance and security services.
Bandt gives us better margins, better visibility of earnings, longer term workloads and recurring revenues
Mike Bottjer, Chairman, Tilbury
鈥淚n private finance initiative [work], we can offer the whole range of support services. We are self-sufficient, except in terms of equity partners,鈥� said Bottjer.
Kwikform鈥檚 access equipment business will sit alongside Tilbury鈥檚 equipment services division. Short-term benefits include cost savings, improved equipment procurement and rationalised equipment services.
Tilbury also plans to use its presence in 24 countries to help expand the Bandt business abroad.
