Spotless CEO Claims Bid Is Not A Prospect

Downer EDI’s massive takeover bid for Spotless shook headlines recently for a lot of reasons. One of them is how it would change the market for office cleaning in Melbourne, or anywhere in Australia. With AU$1.27 B worth of cash backing that bid, a lot of people took notice. Except the Spotless Group itself it seems.

At least, that’s what the chief executive of Spotless, Mr. Martin Sheppard, says. He recently claimed that the Spotless Group is currently focused on playing to their strategy. Mr. Sheppard states that Spotless has secured extensions to some notable contracts in the health industry. Included in this list is a four-year extension to a partnership with hospital operator Healthscope, involving linen and laundry all over the country.

The executive claims that the Spotless group is the representation of a massive amount of combined contract revenues from across the country over a time span of five years amounting to around $210 M. With additional contracts this year, that value spikes to an impressive $300M.

Spotless is currently under contract to the Alfred Hospital and Healthscope. For the former, it acts as provider for several key aspects of the hospital; cleaning, food, security, grounds and garden maintenance, among other things. For the latter, it’s contracted for linen rental and laundry service provider for 31 Healthscope hospitals across the country.

The bid from Downer EDI, representing an interest of $1.15/share was made more than a week past, but Spotless has been under pressure from investors seeking to accept the deal, though the offer included an equity raising that wasn’t really met with positive reception.

According to Mr. Sheppard, the Spotless executives need time to consider the offer.

He states that the company had recently mobilized staff to Queensland to assist people that have been affect by the recent rough weather and floods of Cyclone Debbie. He adds that the company had been securing its site and taking care of their customers. And that the company have been looking over their shoulder with the bid.

Spotless provides a wide range of services, from office cleaning in Melbourne, to catering in Sydney, among other things.

Share