There"s certainly no shortage of investors looking to clean up from cleaning up
Just days after Downer's $1.2 billion offer for Spotless came to an end - with Downer lifting its stake to just below the compulsory acquisition threshold - Phil Cave and Callen O'Brien's Anchorage Capital Partners has signed a deal to acquire TJS Services.
Founded by Todd Jaques more than 20 years ago, TJS Services claims to be one of the fastest growing facility maintenance providers in Australia. It handles cleaning, maintenance, construction and facility management services at more than 2,250 sites in Australia, New Zealand and the US in sectors such as commercial, retail, education, hospitality and entertainment – sort of like a mini version of Spotless.
Some of its biggest customers include Good Life Gyms, Fitness First, Spotlight and Anaconda Group, and Goodstart Early Learning Centres.
Anchorage is better known for its investments in retailing, but it's not the first time the mid-market private equity firm has delved into the services sector.
The firm, which specialises in turnarounds and takes a hands-on approach to investments, owns scaffolding and formwork business Acrow as well as a bunch of consumer assets including Shoes & Sox, childcare owner Affinity Education Group and Australian brands owner Brand Collective.
Anchorage's acquisition of TJS suggests it sees some upside by restructuring the business or helping it reach its full potential. It may also see scope for further industry consolidation.
However, TJS faces increased competition from Spotless under its new owner. Spotless and Downer have formed a joint bidding group to target contracts that would have been hard to win independently, such as providing catering and maintenance services to mining camps.
Westpac financed the TJS deal for Anchorage while Minter Ellison provided legal counsel. KPMG Corporate Finance and JWS advised TJS.
