Leading provider of facility solutions ABM Industries Incorporated ABM recently announced the acquisition of Westway Services Holdings Ltd., a provider of technical engineering services in the U.K., for an undisclosed amount. The all-cash deal is in tune with the strategic Vision 2020 plan of the company and is likely to augment its presence in the U.K. market.
Based in South Ruislip, West London, Westway offers specialized services such as heating, ventilation, air conditioning, refrigeration, electrical installations, building management systems, planned preventative maintenance, and reactive maintenance services. Since its inception in 2000, Westway has developed a niche market with an employee base of approximately 540 employees and annual revenues of $81 million.
The acquisition is a strategic fit for ABM and opens up cross-selling opportunities for its existing customers in the U.K. ABM serves over 370 clients throughout the U.K., including over 200 commercial office locations, approximately 50 centers and retail parks, 15 airports and approximately 1 million square feet of public and entertainment venue space. On the other hand, by forming an integral part of ABM, Westway employees will gain an opportunity to pursue professional development and expand their personal skills.
The transaction aligns with the Vision 2020 plan of ABM that outlines its long-term vision for the next five years. The vision hinges on three primary phases, the first of which is aimed to increase the efficiency of the company through diligent execution of the operating plan and stringent cost-reduction activities. The second phase will focus on driving growth across the realigned verticals through effective realization of the cost savings from procurement, account management and other organizational changes. The final phase of the transformation will include accelerated growth impetus from the vertical alignment and account planning systems with a continuous focus on additional cost savings.
ABM has developed a platform to deliver an end-to-end service model to its clients by realigning its operational structure to an on-site, mobile and on-demand market based structure. This realignment has improved its long-term growth prospects and provides higher margin opportunities by enabling it to better deliver end-to-end services to its clients across urban, suburban and rural areas. The company further expects to extend its global footprint and strengthen its position in existing markets through both inorganic and organic growth across the industry verticals.
ABM currently holds a Zacks Rank #4 (Sell). Other stocks that look promising and are worth a look in the industry include ServiceMaster Global Holdings, Inc. SERV , NV5 Holdings, Inc. NVEE and Navigant Consulting Inc. NCI, each carrying a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment