August 27 2014 Latest news:
Shaun Lowthorpe, Business editor
Wednesday, May 28, 2014
Facilities management provider Servest Group has raised £90m of working capital and acquisition facilities as it gears up to secure its ambitious growth strategy to become one of the top five UK providers in its sector.
The Bury St Edmunds-based group has made several key acquisitions over the past few years including building services firms Maxwell Stewart and FSG in July and October 2013; 7 Day Catering in December 2012; Stag Security in May 2012; and Turners Cleaning and Support Services in October 2011.
Servest, an EDP Top100 firm, has also won some major new contracts over the past few months including an £8.5m per year catering contract with the BBC, and a £9m deal with the London Borough of Sutton.
This week it also announced an increase in the number of stores it services for out-of-town fashion and homeward retailer Matalan.
Rob Legge, group chief executive, said: “This capital raising is part of our growth strategy which we aim to achieve through a mix of organic growth and acquisition.”
East Anglian law firm Birketts advised Servest Group Limited and its South African owners on its capital funding.
Rafael Ruiz, who led the Birketts team on the transaction, said: “The complexity and value of the transaction, involving shareholders here in the UK as well as in South Africa, and the Channel Islands, combined with a tight deal timetable, necessitated teams from our Chelmsford and Norwich offices working together closely. I am delighted with the way that we met Servest’s needs and the demands of the transaction, and that we continue to be a part of this East Anglian success story.”
A Norwich-based business which started as a “man with a van” operation is eyeing further expansion after seeing its predicted turnover increase from £6,000 to £340,000 within five years.