Today, ISS, a leading global provider of facility services, is announcing the successful acquisition of Shanghai B&A Property Management Co. Ltd. in China. With the acquisition ISS has also taken over an established portfolio of contracts especially in the Yangtze River Delta Economic Region of China. The acquisition has closed and has received full approval from local authorities.
“We are very happy about this acquisition which will enable us to significantly extend our existing security service in China. The acquisition is very important for ISS China’s ability to self deliver fully integrated facility service solutions in China. The acquired company is a strong strategic fit for ISS China and it provides ISS with a good platform to continue developing our operations in one of the world’s most promising and fastest growing markets“, said Thomas Hinnerskov, Regional CEO, ISS Asia and Pacific Region.
The Chinese market for security services has previously been dominated by state-run security operations, but in 2010 the security market in China was deregulated and it became easier for private companies to offer security services to its customers.
ISS has been in China since 2005. In 2011, ISS China grew revenues by 31%, supported by contract wins within the Transportation & Infrastructure segment, e.g. a contract with Shenzen Metro Station and a significant scope increase on the contract with Shanghai Pudong Airport.
Shanghai B&A Property Management Co. Ltd was established in January 1998 as a joint-venture by Shanghai Bund Housing Property Management Co. Ltd and AIA Shanghai Co. Ltd. The company has 1,100 employees. Shanghai B&A is engaged in the provision of property management (approx. 25% of revenue) and security services (approx. 75% of revenue) in the Yangtze River Delta area. The company is providing self-delivered unarmed manned security guarding services, property management services with technical maintenance and cleaning services.
The involved parties have agreed not to disclose the price of the acquisition.