ABM Acquires HHA Services
ABM (NYSE: ABM), a leading provider of integrated facility solutions, announced today that it has acquired HHA Services (“HHA”), a leading provider of food and facility management services to hospitals, healthcare systems, long-term care facilities and retirement communities. The transaction closed today. The terms of the transaction were not disclosed.
HHA, when combined with ABM's existing healthcare services, which include Healthcare Parking Systems of America, environmental services, clinical engineering, energy solutions, facility services and security, will create the most comprehensive set of solutions available from a single provider in the healthcare services market. The move will not only increase ABM's service offerings but also expand ABM's geographic footprint.
Founded in 1974, HHA, which generates annual revenues of approximately $50 million, has grown to become a leader in healthcare facility management services through its three distinct lines of service:
- Environmental Services: Includes housekeeping, laundry and linen services and internal patient transportation
- Plant Operations and Maintenance: Includes engineering and general maintenance
- Food and Nutrition: Includes patient dining, senior dining, retail services, clinical nutrition, and food service consulting
“We're very excited about the opportunities HHA brings to ABM and its clients,” said Henrik Slipsager, President and Chief Executive Officer of ABM. “With this transaction, ABM has consolidated and strengthened our healthcare capabilities considerably. We continue to be committed to our strategy of moving ABM's business towards industry verticals, and healthcare is obviously critical amongst those.”
Slipsager continued: “HHA is a great fit for our organization because its array of expert services complements ABM's and because of its respected brand in the healthcare community. In addition, we're able to expand our services to include food and nutrition, housekeeping and patient transport, all of which ensure we solve more needs for our existing and future clients. We're very pleased to have HHA join ABM today as we strive to be the leader in providing integrated facility solutions for healthcare clients.”
HHA's management team, led by President Dan Bowen, will remain intact as the company integrates into ABM's Healthcare services. HHA is headquartered out of St. Clair Shores, MI.
“ABM and HHA share the common goal of providing world-class, cost-effective integrated healthcare services,” said Bowen. “This move to become a part of the ABM family provides HHA with the depth of capital to compete at the highest levels in the marketplace. ABM is fully committed to succeeding in the health services market, and we have the expertise and resources to help make it happen.”
ABM expects the transaction to be slightly accretive in fiscal 2013.
Jones Day acted as legal advisor to ABM in this transaction.
Houlihan Lokey acted as a financial advisor to HHA in this transaction and Wiggin and Dana, LLP acted as legal advisor.
Cautionary Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements that set forth management's anticipated results based on management's current plans and assumptions. Any number of factors could cause the Company's actual results to differ materially from those anticipated. These factors include but are not limited to the following: (1) we may not be able to achieve the strategic and other objectives related to the acquisition of HHA Services, Inc. (HHA), including any expected synergies; (2) we may not experience anticipated growth in our healthcare business due to increased competition, or the inability to retain existing clients or attract new clients; (3) we may not achieve expected growth or sustain current revenues related to the business if there is a contraction in demand for these services due to changes in funding for healthcare services, or other factors that negatively impact our growth; (4) we may not be able to successfully integrate HHA and achieve the expected results of the acquisition; (5) we could be adversely impacted by unfavorable publicity resulting from handling claims or food quality claims at one or more of the facilities that we serve; (6) we may not be able to retain key employees; (7) the acquisition of HHA may divert management's time and focus from operating our business to acquisition integration; and (8) we may encounter material unanticipated costs relating to the HHA acquisition. Additional information regarding other risks and uncertainties the Company faces is contained in the Company's Annual Report on Form 10-K for the year ended October 31, 2011 and in other reports we file from time to time with the Securities and Exchange Commission. We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.
ABM (NYSE: ABM) is a leading provider of integrated facility solutions. Thousands of commercial, industrial, government and retail clients outsource their non-core functions to ABM for consistent quality service that meets their specialized facility needs. ABM's comprehensive capabilities include expansive facility services, energy solutions, commercial cleaning, maintenance and repair, HVAC, electrical, landscaping, parking and security, provided through stand-alone or integrated solutions. With more than $4 billion in revenues and 100,000 employees deployed throughout the United States and various international locations, ABM delivers custom facility solutions to meet the unique client requirements of multiple industries –- ranging from healthcare, government and education to high-tech, aviation and manufacturing. ABM leverages its breadth of services, deep industry expertise and technology-enabled workforce to preserve and build value for clients' physical assets. ABM Industries Incorporated, which operates through its subsidiaries, was founded in 1909. For more information, visit www.abm.com.