Tenon FM, the subsidiary of Mortice Limited (AIM: MORT), the AIM listed security and facilities management company, has announced the acquisition of Elite Cleaning & Environmental Services Ltd. as part of its plan to grow and develop a global integrated FM brand.
The deal, worth around £4.5M, comes a less than a month after Tenon FM rebranded from its previous name of O&G and eighteen months since the Mortice Group bought O&G in 2015. It confirms the stated aim of Tenon FM to grow organically and through acquisition to take the business forward.
Elite has a complementary mix of clients and services and is regarded as an excellent cultural and commercial fit for Tenon FM. The client portfolio includes ITV, BMW, European Development Bank, Dorset and Wilts Fire Services, as well as several schools, colleges and medical centres and surgeries. Its range of cleaning services, as well as additional facilities management services and support services reflect the strategic direction of Tenon FM.
Tim Hancock, chief executive of Tenon FM said, “Buying Elite simply makes our business better. It gives more geographic reach, adds some great skill sets for us to build upon that makes Tenon FM more attractive to new customers and moves us toward becoming an integrated FM service provider. Tenon FM is moving at pace, expanding through organic growth and acquisition, and this deal is really going to help us achieve our goals.”
Manjit Rajain, chairman of Tenon FM said, “This is a great step forward for both Elite and Tenon FM and we are really looking forward to working and growing together. Elite has a strong reputation and client base and the services it provides – a full range of cleaning some FM and support services – makes this deal a great fit.”
There will not be any immediate changes. Gerry McGrath, owner and founder of Elite will stay with the company as will its 1,000 employees.
He said, “This is a great deal for everyone at Elite and Tenon FM. I was impressed straightaway with the very open and direct manner of the Tenon FM team. There is real commercial and cultural synergy between the two organisations and our respective teams. What we each do perfectly complements the other and this is the natural next stage of development for the company. It is going to be an exciting time for us all.”