The contract ist signed, Berlin, May 17, 2019: l. to r. Stephan Possekel, Catherine von Fürstenberg-Dussmann, Dr. Wolfgang Häfele, Eddie Walsh
(Berlin/Waterford, 27 May, 2019) – The international multi-service provider, the Dussmann Group, Berlin, has agreed to acquire the multinational Irish headquartered specialist engineering company STS Group (“STS”). The deal is expected to be closed in June 2019 and is subject to approval of the German antitrust authorities. The parties have agreed to keep the purchase price confidential.
Dr. Wolfgang Häfele, Dussmann Group Executive Board Spokesman comments: “We recently reported on the progression of the “Dussmann Next Level” strategy program, the establishment of the new company division, Dussmann Technical Solutions, or DTS, and the finalisation of a major strategic acquisition. I am now happy to announce that we have completed the acquisition of STS. STS is a first-class technical services provider, operating across multiple regions with a blue-chip client list. It will form the cornerstone of DTS and complement the technical engineering services that we already offer: refrigeration and air-conditioning by DKA Germany and elevator systems and services by HEBO Germany”.
Strategy and Synergies
The Dussmann Group`s strategy program “Dussmann Next Level” is progressing well with profitable growth and strategic acquisitions such as STS. Central to the strategy is the expansion of the Dussmann Group’s core business of facility management with an enhanced and complementary focus on specialist technical services.
The STS deal follows the acquisition of Gaetano Paolin, an Italian technical services provider in 2018. Gaetano Paolin installs and services air conditioning, ventilation, refrigeration and heating systems, electrical and mechanical systems and provides servicing and after-sales services. Further complementary acquisitions planned.
The Group`s vision for DTS foresees solutions for the entire building and system life cycle from design, technical planning and installation to commissioning, maintenance and repair from a single source. Such services are needed by clients with complex technical demands and critical systems such as data centres, hospitals and also the pharmaceutical, medical device, chemical, semiconductor, food, automobile and energy industries.
DTS will establish a new divisional head office in the German city of Frankfurt/Main to coordinate roll-out of services across the region. Where appropriate, resources from STS, DKA, and HEBO will be incorporated. STS will remain an independent subsidiary within DTS and staff and operations will remain unaffected. Senior STS management headed by company chairman, Eddie Walsh and managing director, Richard Hogan will remain with STS in their existing roles post acquisition which will facilitate continuity.
DTS will benefit from the existing technical services capabilities of Dussmann Service. Dussmann Service, the largest company division of the Dussmann Group, provides cleaning, security, technical services and catering (soft services). It will benefit from synergies with the newly formed Dussmann Technical Solutions (hard services). Clients will be able to access a huge range of individual services, hard and soft, with certified quality from a single source. The wide geographic coverage represents a huge advantage, especially in cross-border tenders. Clients appreciate the sound financial basis of the Dussmann Group with annual turnover of over €2.34 bn.
The transaction is subject to approval from the German antitrust authorities which is expected by the end of 2019. A
Mr. Eddie Walsh, Chairman STS sees great opportunities for both clients and employees of STS: “Our clients will continue to enjoy the same superior level of service, delivering complex technical projects on schedule and on budget but post acquisition will also benefit from the increased scale and investment as part of a company with turnover of €2.3 bn . Similarly, our employees will find increased opportunity provided by the ambition of Dussmann for the company and the ability to generate new business in new regions and sectors. Myself, along with the entire senior management team are very happy to become part of the Dussmann Group and are excited by the opportunity that this transaction brings for all our clients and staff alike”
STS was advised by Nicholas O’Gorman, Director Davy Corporate Finance. Commenting on today’s announcement Mr. O’Gorman said: ‘I am delighted for the staff and shareholders of STS and of the Dussmann Group. This transaction represents a great deal for all parties and will underpin the future of a highly successful Irish company as part of a thriving and well capitalised group, with huge ambitions for growth in the sector”.
STS is an experienced provider of electrical engineering, instrumentation design and commissioning services principally serving the pharmaceutical, medical instrumention, data center, transportation and power distribution sectors. With global headquarters in Waterford, Ireland, STS has commissioned multiple projects for blue-chip clients across Europe and the Middle East. STS is a leading player in its sector with an established track record in commissioning complex technical projects for its clients. In 2018, the Company generated sales of approximately €150m and employs over 700 people.
About the Dussmann Group
With 66,122 employees in 17 countries, the Dussmann Group provides services for people, by people. The largest service division, Dussmann Service, provides technical services, catering, security, reception, cleaning, surgical sterilization, commercial facility management and energy management from a single source. DKA constructs, installs and services all types of refrigeration and air-conditioning equipment and systems. HEBO Aufzugstechnik GmbH constructs premium elevators and modernises, services and repairs existing elevators. Gaetano Paolin installs and services air conditioning, ventilation, refrigeration and heating systems, electrical and mechanical systems and provides servicing and after-sales services. Kursana nurses and cares for 13,600 senior citizens. The Dussmann Group operates the media department store Dussmann das KulturKaufhaus in Berlin and in-house corporate child-care at Dussmann KulturKindergarten facilities. In 2018, the Dussmann Group generated total sales of €2.34 bn.