21/10/2016 - 14:37

Airlite Group sold to Millennium for $25m

21/10/2016 - 14:37

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ASX-listed Millennium Services Group has acquired Perth-based cleaning and maintenance company Airlite Group for $25.1 million.

Airlite Group sold to Millennium for $25m
Airlite Group provides cleaning and maintenance services, including at Woodside Plaza in Perth's CBD. Photo: Courtesy Airlite.

ASX-listed Millennium Services Group has acquired Perth-based cleaning and maintenance company Airlite Group for $25.1 million.

Melbourne-based Millennium told the market today it had entered into a binding agreement to buy Airlite for $25.1 million, with the acquisition price representing an indicative multiple of about five times Airlite’s 2016 earnings before interest, tax, depreciation and amortisation.

Airlite was established in Perth in 1967 and provides cleaning, maintenance and integrated services in WA, with offices in Sydney, Melbourne and the Gold Coast.

The company employs about 1,500 personnel.

Millennium is a cleaning, security and integrated service specialist that focuses on the retail shopping centre, commercial property and government sectors.

On completion of the acquisition, Airlite executive chairman Ross Gavranich will join Millennium’s board.

Millennium chief executive Mark Baldwin said the Airlite acquisition was a transformational step change in scale and national footprint for the business.

“Strategically, the acquisition brings together two respected and culturally aligned service providers that share a common long term commitment to client service and innovation,” he said.

“Airlite has a large and skilled direct labour force, with experience in value-added services, similar to the profile of Millennium’s existing workforce, giving us confidence the integration process will proceed smoothly.”

Millennium will fund the acquisition with an existing $42 million facility with ANZ Banking Group.

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