THREE months after winning a $2.5 million contract to manage BHPBilliton housing in Port Hedland and South Hedland, Delta Facilities Management has been sold to the Compass Group for an undisclosed sum.
Paris-based Compass is planning to expand Delta’s reach through the rest of Australia and into South-East Asia.
Kim Janney has been appointed Delta’s general manager.
The seven-year-old company formed by Ashley Lewis and Dennis Criddle had also secured clients including Lion Ore Australia Nickel, Woodside Australian Energy, the Department of Contract and Management Services and Robe River Iron Associates.
Delta director Dennis Criddle told WA Business News the decision to sell to Compass had come because the facilities management player had grown as far as it could on its own.
He said he and Mr Lewis had been Delta’s sole owners until the sale.
“We looked at our position in the market and thought it was better to be taken over,” Mr Criddle said. “From our perspective, both as directors and owners and for the people working in the company, this was the best way forward.”
He said Delta had grown to become a medium-sized player in the facilities management industry – a dangerous size to be.
“The expansion of the facilities management companies such as Transfield meant Delta had to be a big player or a small player,” Mr Criddle said.
“Both the large and small ends of the market can be very lucrative.
“But there’s no room in the middle ground, and that’s where we were heading.
“From a Western Australian point of view it’s good because a lot of the expertise has been gained from working for the large resource companies. That expertise can be used around Australia and overseas.”
Mr Criddle is remaining on Delta’s board in a consulting capacity.
Both he and Mr Lewis are maintaining their partnership in Axis and the Karratha Intercontinental Hotel.
