€ 536 million, Dec 2007
Integrated service management
Coor Service Management Group AB, based in Stockholm, is the leading integrated facilities management (IFM) company in the Nordic region. With operations in Sweden, Norway, Denmark and Finland, Coor’s customers are blue chip companies and public institutions. Coor’s service offering includes:
• workplace services, such as cleaning, telephony and conference support;
• property services, including internal and external maintenance of premises;
• production-related services, such as maintenance and installation of machinery;
• consultancy to help its clients improve customer services and manage change.
Coor can offer substantial efficiency gains and cost reductions by integrating and managing services within one contract. This has proved attractive to the growing number of Nordic private and public sector organisations that are looking to outsource their non-core functions. The company employs approximately 4,300 employees and in 2010 Coor generated revenues of SEK 6.3 billion.
Cinven's strategy for Coor is to support the company's growth both organically and through acquisition. Coor's growth will come from additional project volumes within existing contracts, new outsourcing contracts and the acquisition of smaller competitors. The opportunity for growth is particularly strong in Norway, Denmark and Finland where the markets are somewhat less mature. In addition, Coor intends to expand its product offering into Production Related Services in order to capture additional revenue opportunities with new and existing customers.
During its ownership of Coor, Cinven has worked closely with management to grow the top line, both organically as well as through acquisition. Since the acquisition, Coor has won numerous new contracts with blue chip customers such as for example SAS, Sandvik and Chr Hansen. In addition, Coor has also completed a number of add-on acquisitions including SAPA IndustriService, which gives Coor a strong platform in the Production Related Services segment. The additional volume from contract wins and acquisitions has to some extent been offset by the activity based volume reductions in some of Coor’s contracts with industrial customers that were impacted by the economic downturn. Cinven has helped management to realise operational efficiencies and to improve cash flow generation and has instigated a number of management changes to strengthen the team. The company is currently benefiting from the overall economic recovery in the Nordic region.