Downer Puts in Bid to Buy Spotless
Downer Group, North Ryde, New South Wales, Australia, recently launched a $1.27 billion off-market cash takeover bid for Spotless Group, Melbourne, Victoria, Australia. Downer is offering $1.15 a share for Spotless to secure the 80% stake in the business that it doesn’t already control, according to news reports.
Downer CEO Grant Fenn said the acquisition was a significant investment in Downer’s strategy to expand its capabilities and strengthen its position as a leading provider of services to customers in Australia and New Zealand. Spotless Chairman Garry Hounsell said the company’s board continues to believe in the fundamental strengths of the business, which include a blue-chip customer base and a strong portfolio of long-term contracts, as well as operating the largest commercial laundry business in Australia and New Zealand.
In its most recent earnings report, Spotless recorded a $33 million profit for the previous six months on $1.4 billion of revenue. To read the full article, click here.