BAM set to make a big noise in facilities management with new acquisition

BAM Construct UK Ltd, an operating company of Royal BAM Group, has expanded its service offering with the acquisition of a facilities management services provider.

BAM, which provides FM services for schools in Bromsgrove and Solihull, has taken on Sutton Group Ltd and its subsidiary Sutton Maintenance Ltd.

The acquisition is expected to contribute around £13m to BAM’s turnover from its facilities management activities and will increase the number of employees by more than 100. Sutton Group was established in 1978 and operates from four locations in the UK: London, Luton, Manchester and Glasgow.

Sutton provides hard and soft maintenance facilities and its portfolio includes retail, office and residential properties.

BAM’s UK facilities management arm, BAM FM, has been operating successfully since 2001, and provides services at more than 30 schools. In 2011 it expanded to the private sector with customers such as Unison. It also manages commercial buildings in the BAM Properties’ portfolio.

The acquisition formalises a working arrangement between the two companies stretching back over a number of years, during which Sutton has provided mechanical and electrical support at many of the sites that BAM FM manages.

The value of the work Sutton performed for BAM in 2012 was almost £1.57m. The two companies collaborated to provide FM services at some of the sites in the Olympic Village during last year’s London Games.

BAM said the deal was in line with its strategy for growth and would broaden its range of FM services.

Nico de Vries, chairman of the executive board of Royal BAM Group, said: “The strategic acquisition of asset management companies like Sutton is an important part of the group’s Strategic Agenda 2013-2015. BAM looks to play an increasing role in the management of its customers’ construction and infrastructure assets in our European home markets.”

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