United Group to acquire Unicco for $410 mn
United Group Ltd, an Australian company that provides property services, agreed to buy Unicco Service Co for A$477 million ($410 million), gaining new contracts for building maintenance and janitors.
By Agencies |
SYDNEY: United Group Ltd, an Australian company that provides property services, agreed to buy Unicco Service Co for A$477 million ($410 million), gaining new contracts for building maintenance and janitors.
United will pay A$407 million in cash and the rest in shares for Boston-based Unicco, the Sydney-based company said today in a statement. The purchase will increase earnings-per-share by 5 percent in the first year.
Chief Executive Officer Richard Leupen is expanding in the US to tap demand for building management services, including upkeep, cleaning and engineering work after paying A$163 million last year for Chicago-based real estate manager Equis Corp. Spending on US contract maintenance services is forecast to rise 5.6 per cent annually to $95 billion in 2011, according to Freedonia Group, a market research firm.
``Customers are demanding corporate real estate and facilities management services,'' Leupen said in the statement. ``We can now provide this in the US with Equis and Unicco.''
United Group will help fund the deal by selling A$281 million of new stock to institutions and shares to individual investors. The institutional sale will be underwritten by Goldman Sachs JBWere Pty at A$16.30 a share, 7.1 per cent less than yesterday's closing price.
United will pay A$407 million in cash and the rest in shares for Boston-based Unicco, the Sydney-based company said today in a statement. The purchase will increase earnings-per-share by 5 percent in the first year.
Chief Executive Officer Richard Leupen is expanding in the US to tap demand for building management services, including upkeep, cleaning and engineering work after paying A$163 million last year for Chicago-based real estate manager Equis Corp. Spending on US contract maintenance services is forecast to rise 5.6 per cent annually to $95 billion in 2011, according to Freedonia Group, a market research firm.
``Customers are demanding corporate real estate and facilities management services,'' Leupen said in the statement. ``We can now provide this in the US with Equis and Unicco.''
United Group will help fund the deal by selling A$281 million of new stock to institutions and shares to individual investors. The institutional sale will be underwritten by Goldman Sachs JBWere Pty at A$16.30 a share, 7.1 per cent less than yesterday's closing price.
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