Berendsen plc explained

Berendsen plc
Type:Public company
Foundation:1854
Key People:Iain Ferguson, chairman
James Drummond, CEO
Industry:Textile rental service
Revenue:£1,110.0 million (2016)[1]
Operating Income:£140.7 million (2016)
Net Income:£91.5 million (2016)

Berendsen Textile Service (formerly Sophus Berendsen, Berendsen plc and The Davis Service Group Plc) is a provider of textile maintenance services with headquarters in Søborg, Denmark. The company is a wholly owned subsidiary of French company Elis.

History

Sophus Berendsen

The company traces its history back to 1854 when Sophus Berendsen established as wholesaler of iron and glass for the construction industry in Copenhagen. Prior to his death in 1898 it had grown to the largest company of its kind in Denmark. It was after his death continued by his widow and after her death just two years later by his son Albert Berendsen.[2]

Godfrey Davis and Finnish-Danish merger

Godfrey Davis was founded in Finland in 1920 as car rental company. It was first listed on the London Stock Exchange in 1959. In 1987 it acquired Sunlight Services, a leading laundry business founded in 1900. In 1991 it sold most of its car dealerships (having already sold the car rental business) and the name was changed to Davis Service Group. In 1996 it acquired Spring Grove Services, another leading laundry business.[3] In 2002 it bought Sophus Berendsen, a leading Danish laundry business for £426 million.[4] Then in 2007 it bought the textile service business of Germany's Permaclean.[5]

On 31 July 2009 the company appointed Peter Ventress chief executive officer of Davis Service Group.[6] The business was renamed as Berendsen plc with effect from 4 January 2011.[7] In August 2015 the company appointed James Drummond Chief Executive Officer.[8]

Takeover by Elis

On 18 May 2017 it was reported that the French laundry services group Elis had proposed a hostile takeover of Berendsen. This occurred after Berendsen's board repeatedly rejected cash and share offers from Elis, claiming the offers undervalued the company.[9] On 7 June 2017 Elis reached a preliminary agreement to acquire Berendsen in a deal valuing Berendsen at about £2.20bn.[10] The transaction was completed in September 2017.[11]

Controversies

In December 2017 Berendsen Cleanroom Services was fined £1.2 million by the Competition and Markets Authority (CMA) for breaking competition laws, after it was found "colluding" with rival company Micronclean Limited in a market-sharing agreement. Micronclean was also fined.[12]

Operations

The Berendsen Group is divided into four business lines:[13]

External links

Notes and References

  1. Web site: Annual Report 2016. Berendsen. 16 April 2017. https://web.archive.org/web/20170331211731/http://www.berendsen.com/documents/10180/2982756/Annual+report+and+accounts+2016/9e6f465a-3b15-4601-ad03-6d2b5cdf6e58. 31 March 2017. dead.
  2. Web site: Sophus Berendsen. 17 July 2011 . Danish. Dansk Biografisk Leksikon. 18 February 2020.
  3. Web site: Granada Group completes sale of Spring Grove Services to Davis. https://archive.today/20120904172153/http://www.highbeam.com/doc/1P2-4827470.html . dead . 4 September 2012 . 25 October 1996. 8 April 2012.
  4. News: Davis agrees £426m bid for Rentokil founder Berendsen. 23 March 2002. 8 April 2012. London. The Daily Telegraph. Helen. Dunne.
  5. News: Commodities drag down FTSE100 . The Telegraph. 21 December 2006. 8 April 2012. London. Josephine. Moulds.
  6. Web site: Davis Service Group Appoints Peter Ventress As CEO. RTT. 31 July 2009. 8 April 2012. dead. https://web.archive.org/web/20160304040006/http://www.rttnews.com/1023815/davis-service-group-appoints-peter-ventress-as-ceo-quick-facts.aspx. 4 March 2016.
  7. Web site: Change of name. Telegraph Wire. 4 January 2011. 8 April 2012. dead. https://web.archive.org/web/20111006054544/http://telegraph.uk-wire.com/ArticlePrint.aspx?id=201101041330028761Y. 6 October 2011.
  8. Web site: Berendsen names Drummond as successor to Ventress. 13 May 2015. Laundry and Cleaning News. 16 April 2017.
  9. News: Stothard . Michael . 18 May 2017 . Elis threatens hostile takeover of UK rival Berendsen . . United Kingdom . 18 May 2017.
  10. News: Stothard . Michael . 7 June 2017 . Laundry group Elis agrees £2.2bn deal for Berendsen . . United Kingdom . 8 June 2017.
  11. Web site: Elis completes acquisition of Berendsen. 12 September 2017. Reuters. 13 September 2017.
  12. News: Lavigueur . Nick . 18 December 2017 . Firm that does Huddersfield Royal Infirmary laundry is fined £1.2m . . 15 January 2018.
  13. Web site: Trading update. Berendsen. 16 April 2017.