One of Wales' leading cleaning firms, A&R Services, has been acquired in a management buyout deal.
Rayner Davies, who started the business in 2010 with husband Ashley Davies, sold her interest in the business to Mr Davies and two other directors in Chloe Stanford, who first joined the company as an apprentice at the age of 18, and operations manager Dora Vasarhelyi.
Mrs Davies said she will still remain a share holder in the firm, retaining part of her shares.
There are no plans to buyout Mr Davies’ stake in A&R Services at a later stage. The MBO has been supported by the Development Bank of Wales.
The Bridgend-based company provides commercial cleaning, bio-misting, pest control and security services to industry, leisure, education and the healthcare sector across Wales.
It employs over 350 staff members across South Wales and the south west of England, and has a turnover in excess of £4m
Mr Davies said: “The future of the business is very exciting, I am looking forward to working with the new management team who have played a major part in our story to date, and who will now play an even greater part in our future. I would also like to thank the Development Bank and the teams across the GS Verde Group for their support throughout this transaction and for their help to make it possible.”
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Mrs Davies said: “Ashley’s financial knowledge has been integral to steering the business and I know that the team has certainly got the knowledge and the passion to continue to deliver the high quality service that A&R is known for and maintain employment for our team as I look to pursue other business interests.”
The deal was funded by the Development Bank of Wales with a loan and equity investment package from its Wales Management Succession Fund and Wales Business Fund.
GS Verde Group advised and supported the commercial cleaning company throughout the transaction.
Tom Rook of the Development Bank of Wales said: “The purpose of our Wales Management Succession Fund is to help support succession planning by funding the buyout of shareholders that are ready to exit a business. The management team has built an incredibly successful business and we’ll now work alongside Ashley, Chloe and Dora to provide ongoing support to ensure the continued success of A&R Services.”
In 2021, A&R Services was short-listed for the fifth consecutive year at the 2021 Fast Growth 50 Awards, placing number 25 on the list. The Wales Fast Growth 50 is seen as the definitive guide to the fastest growing indigenous firm in the Welsh economy.
The buyout follows the news that another commercial cleaning company in Wales has already secured three new contracts this year, collectively amounting to £500,000 of revenue.
Moreover, Swansea headquartered Mrs Buckét, has won a trio of clients at the start of the new year, which amount to 30% of the company’s overall target for 2022.
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Last year, the company celebrated a 55% increase in revenues, from £2.9m in 2020 to £4.5m, and took on 37 new clients. This year, it wants to add a further 26 clients and plans to create 100 new jobs in Wales and the South West of England to meet its ambitious growth targets of becoming a £12m company by 2025.
Rachael Flanagan, founder and managing director of Mrs Buckét, said: “Cleaning will continue to hold a seat at the top table for many companies in 2022 and beyond. Leaders are continuing to work towards maintaining a safe environment for their workers as the country grapples with rising COVID-19 cases and fights against other nasty bugs and viruses.”