Quess Corp, India’s top integrated business services provider, declared that it has entered into agreements to acquire the facility management and catering businesses of Manipal Integrated Services Pvt. Ltd., and have permitted the draft scheme of arrangement for such demerger of the facility management and catering businesses to Quess. This will help fortify the market leading position of Quess in the integrated facility management space in India.
On the acquisition, Quess corp share price traded at the new lifetime high of Rs. 704.
Quess will firstly invest Rs 220 crore by subscribing to CCPS of MIS for obtaining an interest in the Facility Management and Catering Businesses, development of the same and facilitating the demerger of the same businesses. Afterward, the Facility Management and Catering businesses of MIS will be demerged into Quess pursuant to a Scheme of Arrangement which will view Quess issue approximately seven million one hundred and fifty thousand equity shares to equity shareholders of MIS.
MIS manages the facility management, food services and hostels business of the Manipal Education and Medical Group, in addition to assisting marquee third party clients. MIS, along with its subsidiaries, serves more than 120 clients with presence in Healthcare, Education and BFSI (Banking, Financial Services and Insurance) sectors. With a headcount in surplus of 17,000 associates, the facility management and catering businesses are likely to close FY17 with estimated revenue of INR 4,265 million.
Meanwhile, Quess Corp share price closed at Rs. 677.95 and was last traded at Rs. 680.30, up by almost 11%.
Quess and MEMG, with this contract, have entered into a long term partnership under which Quess will supply facility management, catering and security services to all MEMG associated entities for a minimum period of five years.
Commenting on the partnership, Mr. Ajit Isaac, Chairman and CEO of Quess Corp said that they are excited about their partnership with the Manipal group. The acquirement helps build their facility management capabilities in the healthcare and education sectors with a focus on providing higher value added services to clients.In addition to being non-cyclical sectors, the investment is margin accretive and in line with Quess’ philosophy of supporting strong management teams.They are confident of achieving further synergies between acquired businesses and Quess’ present facility management business to create long term stakeholder value.
Dr. Ranjan Pai, MD and CEO of Manipal Education and Medical Group commented that with this announcement, they have taken a step further in sharpening focus on their core businesses of healthcare, education and research. They have built a profitable and diversified portfolio of facility management and catering clientele, and this deal presents the best strategic outcome for the business. They believe that Quess Corp's domain expertise complements their philosophy of providing high-quality, personalized services to their patients, students and other customers.
Quess Corp is the top 500 performing stock identified by Dynamic Levels for the quarter. For the details on the stocks, drop by at Quess Corp share price history page of Dynamic Levels website.
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