Tenon Property Services, a subsidiary of Singapore-headquartered,AIM-listed Mortice Ltd. has acquired Delhi-based Rotopower Projects PrivateLimited for Rs 100 million (£1.28 million) after making adjustment for debtsand sufficient working capital.
Outlining details of the acquisition, Mr Manjit Rajain, ExecutiveChairman, Mortice, said that the acquisition will be funded through the company'sexisting resources. Under the terms of the Share Purchase Agreement, theconsideration is payable immediately on the closing date. The sellers have agreedto deposit Rs 15 million (approximately £190,000) with the company in respectof representation and warranties to be paid to the sellers on the secondanniversary of the acquisition which would be subject to any claims made underthe indemnities provided to Tenon by the sellers under the Agreement.
Tenon entered theIntegrated Facilities Services business in India just prior to the economyhitting the current downturn. However, the company has offered the market asuperior product, as a result of which it has built a portfolio of over 5million square feet under management in its 18 months of existence. Tenonoffers corporations a truly national service spread through its network of over50 offices across India.
Together, Tenon andRotopower will provide FM services to over 100 clients, managing an area of overseven million sq ft across India. The acquisition will increase the combinedworkforce of approximately 20,000 employees.
The acquisition willstrengthen the FM business of Tenon and significantly enhance its existingrevenue streams by increasing the capabilities of the company'svertically-integrated FM service delivery model. "Rotopower's strong presencein North India and growing presence in East India will complement Tenon's strongpresence in South India and consolidate its pan-India services capability,"said Mr Rajain. "The acquisition demonstrates the group'scommitment to deliver superior quality service to customers, by providingadditional technical capabilities under the combined delivery platform ofRotopower and Tenon," he added.
"We are delighted aboutthe acquisition of Rotopower, which has concluded after an exhaustive searchover several months during which we had researched a number of potentialacquisition targets to identify the ideal strategic and cultural fit. Rotopowerundoubtedly has all the advantages that we were seeking through the acquisitionand we look forward to working together and maximising the opportunitiesidentified for growth," said Mr Andrew Barker, CEO, Tenon Property Services.
The customer base ofTenon comprises both traditional market segments and non-traditional ones. Thecompany today has mandates from educational institutions, hospitals, fleetmanagement companies, etc. apart from real estate giants or MNCs.
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By : News Team
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