Cleaning services firm eyes growth on €175m takeover

Noonan Services, best known for its office-cleaning services, is eyeing growth in Ireland and the UK in the coming years after its €175m acquisition by South African fund Bidvest.

The Johannesburg firm, which has interests including catering and office supplies, said it struck a deal with Noonan’s majority owner, Alchemy Partners.

The existing management of the Dublin-based firm, led by chief executive John O’Donoghue, will continue to lead the company.

Noonan’s services include facilities management, technical, security, and cleaning.

It employs over 13,000 people in Ireland and the UK.

Since being acquired by Alchemy, sales at Noonan have more than tripled to over €300m.

Noonan operates in the UK and Irish markets which are estimated to be worth in excess of €13bn.

Those markets are anticipated to grow significantly in the coming years, as companies increasingly outsource their operations.

Noonan said Ireland will remain a key market.

With the long-term financial backing of Bidvest, it said it will tap growth in the UK and Ireland.

Key growth areas for Noonan include life sciences, technology, agri-food, retail, local government, and transport, it said.

Mr O’Donoghue said: “We are now delighted to have attracted a new owner of the scale and calibre of Bidvest, committed to the long-term growth and development of the company. We look forward to working with them in realising our joint ambition for the business and to capitalise on the significant opportunities in our sector and key markets.”

Bidvest chief executive Lindsay Ralphs said the acquisition would allow it to establish a strong presence in Ireland and the UK.

“We believe there is a great market opportunity to grow the business further,” he added.

The South African company describes itself as a trading, distribution and services group, operating through divisions such as services, freight, automotive, office and print, commercial products, financial services and electrical.

Led by group chief executive Lindsay Ralphs who has been part of Bidvest Group since 1992, the firm continues to hold investments in South African pharmaceutical company Adcock Ingram, South African airline Comair, South African tour operator Cullinan Holdings, and Mumbai Airport, as well as other listed and unlisted investments. Bidvest Bank is an 100% owned subsidiary of Bidvest.

The firm was founded in 1988, employs 114,000 people across its various divisions, and has investments in more than 300 companies.