ISS enters Indian security market
ISS strengthens its position in India by acquiring 49% of India’s third largest security firm SDB Cisco
ISS, the world’s leading facility services provider, acquires 49% of Indian security firm SDB Cisco. The acquisition secures ISS a leading position in one of the world’s fastest growing markets for outsourced services and provides ISS India with a comprehensive service offering of cleaning, catering, pest control and security.
“We are very happy about this acquisition, which is a major step forward for ISS in India and for the Group’s ambitions in Asia. We achieve a significantly stronger position in one of the world’s fastest growing markets,” says Jeff Gravenhorst, Chief Executive Officer, ISS Group.
The stake in SDB Cisco is ISS’ third large acquisition in India following Shivas (catering) in 2007 and Godrej (pest control) in 2009. SDB Cisco provides manned guarding, cash and valuable transportation, and electronic security services. The company has had annual organic growth rates of 20-40% for the past five years and has revenue around DKK 365 million.
SDB Cisco employs 27,000 people. Combined, ISS India and SDB Cisco will have 45,000 employees, making India the second largest ISS operation.
“India is one of the fastest growing economies in the world and will be for the foreseeable future. We expect strong double digit revenue growth in the years to come,” says Jeff Gravenhorst.
ISS and two employee welfare trusts acquire 100% of the shares in SDB Cisco. The objective of the trusts is to create value and improve health and safety for the employees. ISS will own 49% of the company and the trusts 51%. The sellers are Sicagen, a listed company in Chennai, and Singapore-based Certis Cisco.
Facts
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The current growth rate for the outsourced facility services market in India is 15-20% p.a. which is expected to continue for at least the next five years.
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SDB Cisco’s major clients include a number of large banks. The company has had annual organic growth rates of 20-40% for the past five years.
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ISS has made 10 acquisitions in India since 2005. ISS India had revenue of DKK 271 million in 2009, up 40% compared to 2008.
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ISS’ total revenue in Asia rose 31% in 2009 to DKK 4.1 billion and operating margin rose from 6.7% to 7.5%. This makes Asia the fastest growing and most profitable region in the ISS Group.
For media queries, please contact:
Jean-Manuel Bullukian
Regional CEO, Asia & Pacific, ISS A/S
Kaspar Bach Habersaat
Head of Group Communication, ISS A/S
Phone: +45
38 17 62 39