NXP, the largest supplier of businesses and cleaning products to the corporate and government sectors, has completed an agreement to purchase The Service Company.
The Service Company, and its South Island entity Proclean Reward, is New Zealand’s largest mid-market facilities supplies firm.
From small beginnings more than 20 years ago, The Service Company has grown into a multimillion-dollar business servicing all types of organisations nationally.
The Service Company is headed by Ian Jemmett, who will continue with the organisation as chairman and general manager.
“Together, NXP and The Service Company will be the largest facilities and cleaning supplies organisation in New Zealand,” says Jemmett.
“It will be business as usual for our customers, but the combined companies will create a facilities and cleaning supplies powerhouse in New Zealand.”
The deal will see NXP vertically integrate its local operations to include bulk manufacturing, environmentally conscious cleaning and hygiene products and increase its B2B customer base by thousands – including export markets in Australia and the Pacific Islands.
The Service Company has a presence in Auckland, Wellington, and Christchurch and supplies 20,000 multi-braded product lines to a database of more than 25,000 customers nationwide including fast food restaurants, airports, cleaning companies and franchises.
“At The Service Company we believe extremely strongly in a high level of customer service and interaction, not just with the decision makers of the businesses we serve, but with all staff within the company,” says Jemmett.
“From business owners through to the cleaning staff on the frontline, we want to serve everyone equally and that level of interaction has been key to our success.”
He says the business has grown around 600 per cent over his 15-year tenure as CEO and demand for cleaning and hygiene products during COVID has seen budget targets exceeded by more than 180 per cent in a single month.
Jemmett says while other competitive offers to purchase the company were on the table, NXP was the most well-aligned strategically, with the merger to “play to the strengths of each organisation”.
“We have had a tremendous period of rapid growth and the team has had to work incredibly hard and incredibly long hours. Like our own business, NXP has had significant growth – particularly in the past year as it had leveraged supply chains to become an essential service provider of cleaning products.
“While both organisations operate across different industry sectors, NXP’s strength is at a corporate and government level while The Service Company meets the janitorial supply needs of mid-market businesses across New Zealand.
“Our manufacturing and distribution firm specialises in the production of environmentally accredited, white label cleaning products which provides NXP with a number of opportunities to expand into new markets.”
Joe Taylor, CEO of NXP, says the company and its South Island entity Proclean Reward, will operate as a going concern under existing branding and all of the company’s 40 employees will all remain with the company.
He says The Service Company deal will help ensure consistency of cleaning and pandemic supplies for their government agency and corporate customers.
“Supply chains have become increasingly important in recent months and the ability to scale production of cleaning supplies at short notice is critical to the stability of businesses in our market as well as our customers.”
2Care Products is The Service Company’s chemical manufacturing operation, specialising in an environmental range as well as premium and low-cost options and has led the way in utilising palm oil-free alternatives in the manufacturing process.
“The Service Company is a highly respected supplier in its market segment and bringing it under the NXP group umbrella will help ensure not just continuity of supply for essential products, such as hand sanitiser, but also allow us to expand our environmentally conscious cleaning product range.
“The purchase of The Service Company marks the evolution of NXP from its origins as a ‘stationery company’ a decade ago, to the point where the facilities and kitchen category will now make up more than 60 per cent of revenue.
The purchase agreement has been finalised and the merger will take effect from early December 2020.
This article first appeared in the November issue of INCLEAN magazine. Read the original article here
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