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Coor

Activity
Integrated service management
Transaction value
€536 million
Acquired
Dec 2007
Sector
Business Services

Business
Coor Service Management Group AB, based in Stockholm, is the leading integrated facilities management (IFM) provider 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 (‘soft’ facilities management);
  • property services, including internal and external maintenance of premises (‘hard’ facilities management); and
  • production-related industrial services, such as maintenance and installation of machinery.

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 7,000 employees and in 2012 Coor generated revenues of SEK 7.2 billion.

Strategy
Cinven's strategy for Coor is to support the company's growth both organically and through acquisitions. 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.

Progress

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 across the region, significantly increasing the footprint outside of Sweden. In addition, Coor has also completed a number of add-on acquisitions, most recently of Addici, providing further competence and customer base in the small-to-medium client 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 have been adversely impacted by the inconsistent macroeconomic recovery following the financial crisis. Cinven has helped management realise operational efficiencies and improve cash flow generation as well as overseen a CEO change and a broad strengthening of the management team.