Tenon acquires UK's Office & General Group for Rs 65 Crore

MUMBAI: New Delhi-based facility management services provider Tenon Group has acquired UK’s Office and General (O&G) Group Ltd for Rs 65 crore. The cash and equity deal gives Tenon group an opportunity to expand footprint into the European market.

“We will look for further acquisition opportunities in the matured markets in the UK and US,” said Major Manjit Rajain, founder and managing director of the company said in a telephonic interview with ET. According to him, the company is in talks with private equity investors to raise capital for acquisitions in the domestic market too. O&G deals with commercial and office facility management encompassing soft and hard services in the UK. It serves universities and ministry of defence among others.

It is headquartered in London with offices in Manchester and Wolverhampton. Tenon plans to expand base further into the Asian market and is looking at brownfield opportunities. It acquired Rotopower in 2009 to add the facility management arm and is listed on the Alternative Investment bourse in the UKAIM in 2008.

With this acquisition of O&G, the total revenue of the combined entity is now more than Rs 1,000 crore, the company said. The acquisition has been financed by Barclays Bank. The company plans to expand in other South-East Asian countries such as Phillippines, Indonesia and Malaysia through green and brownfield projects. “We want to prepare the company for a potential listing on the Indian bourses too in the near future,” Rajain said.

“O&G will bring to the table both expertise and skills from a mature market that will add immense value to the operational capability thus raising the bar of services delivery for the Tenon Group,” the company said. “This acquisition will bring to the Indian sub-continent the access to better control and international systems and processes from an established market.”