Diversified facilities management company Spotless Group has taken steps into the mechanical services and energy efficiency technology sector with this month’s signing of a conditional acquisition of AE Smith. The transaction is expected to be finalised at the end of this month.

“I am excited by the opportunity to further strengthen our capabilities by providing airconditioning, mechanical and building services to new and existing clients directly, reinforcing our position as Australia’s leading and integrated facility services provider. AE Smith provides Spotless with a platform for growth into technical services across a range of sectors including health, government, industrial and commercial,” Bruce Dixon, Spotless chief executive and managing director, said in media statements.

Founded in 1898, AE Smith has annual service and maintenance revenues of over $100 million and about 665 employees across 10 locations throughout Australia. Its capabilities include mechanical services, tri-generation, co-generation, refrigeration, energy-efficiency audits, commissioning, building tuning, energy optimisation technology, solar power, solar hot water, energy retrofits and HVAC [heating, ventilation and air conditioning].

“Spotless offers us the opportunity to build upon our market leading position in mechanical services and broaden our offering to become the clear market leader providing the full range of technical services including mechanical, refrigeration, fire, hydraulics, energy and electrical,” David Willett, AE Smith chief executive said.

“We will be on a strong growth path over the coming years. This will create development and career advancement opportunities. We will also need to recruit substantial numbers of talented people to join our team.”

Spotless Group generated total revenue of just over $2.6 billion in 2014, and has about 33,000 employees across the entire group and its subsidiaries. Its areas of operation include outsourced facilities management, maintenance, security, catering, cleaning, waste management including recycling operations, linen services and landscaping.