Sources inform "Globes" that Danish group ISS is selling its business in Israel, which is headed by Hezi Ovadia, for NIS 300 million.
After a pricing process that lasted several months, agreements have been signed for the sale of the local businesses to two buyers: the aviation catering company will be sold to French company Newrest, which operates in 49 countries, while the catering and cleaning companies will be sold to the T&M group, which operates in security and cleaning.
As previously reported by "Globes", the catering business will ultimately be sold to Sodexo, but the sale to Sodexo will be by T&M, which is buying the cleaning business.
The sale of the ISS Israel group follows a change in business strategy by ISS to focus on global customers operating in many large countries, and ISS's announcement a few months ago that it would exit from thirteen countries, among them Israel. Completion of the deal is subject to approval by the Israel Competition Authority (formerly the Israel Antitrust Authority).
ISS Israel provides catering, cleaning, maintenance, and aviation catering services, and employs some 8,000 people. It has operated in Israel since 1999. Among its customers are companies such as Intel, Teva, Rafael, Israel Military Industries, Applied Materials, Flextronics, Israel Aerospace Industries, Israel Police, hospitals, airlines, and more.
According to industry sources, ISS Israel's annual revenue amounts to about NIS 1 billion. The company recently won substantial contracts, among them a contract to provide catering services to Israel Aerospace Industries worth some NIS 500 million over the contract period.
ISS is listed on the Copenhagen Stock Exchange (Nasdaq Copenhagen), is headquartered in Denmark, and posted revenue of $11 billion in 2018. It currently operates in 77 countries, where it employs about half a million people.
ISS was advised in the sale by Schwartz Investment House and Barnea Jaffa Lande & Co.
Published by Globes, Israel business news - en.globes.co.il - on August 13, 2019
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