CLR Facility Services’ acquisition of a majority stake in Hindustan Facilities had to be future proofed by anticipating and documenting future scenarios in a fast consolidating facilities management sector, said a partner involved in the deal.
The acquisition by the Pune-based soft services company was also different because the promoters of the target are set to continue in the business for a brief period, and also because the consolidation is happening over a period of time, said Dharmesh Kotadia, a partner at Clove Legal, the adviser to Hindustan Facilities.
CLR, which is backed by India Nivesh, offers soft services such as landscaping and waste management; technical services such as operation, maintenance, plumbing and carpentry; business support services such as help desks and transportation management; specialized cleaning services such as carpet shampooing; and specialized pharmaceutical services such as audit training.
The company’s clients include Google, Reliance Retail, Cognizant, Aditya Birla Group, Yes Bank and Fortis.
Hindustan Facilities, whose clients comprise a number of hotel chains, offers services complementary to CLR’s existing capabilities. It provides housekeeping, technical support, pantry and office support, pest control, façade cleaning, tank cleaning and project cleaning.
Clove Legal associate Ashita Songara worked with partner Kotadia in advising Hindustan Facilities on the deal.
CLR was advised by IC Universal Legal partner Puneet Shah and associate Dhruma Paronigar, along with members of CLR’s in-house legal team.