ISS appoints Sir Charles Allen ahead of revived IPO

Amy King
22 August 2013

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Danish facilities group ISS, backed by EQT and Goldman Sachs, has appointed Sir Charles Allen as chairman, suggesting the firm may once again revive plans for an IPO.

Allen is the former chief executive of UK facilities management firm Compass and broadcaster ITV. He succeeds Ole Andersen, who stood down after an 8-year stint as the head of the firm.

Henrik Poulsen, former CEO of Danish telecoms operator TDC, will also join the ISS board.

EQT and GS Capital Partners were understood to have hired Morgan Stanley to manage a potential listing of the asset in 2010, as reported by unquote". The duo bought the asset in 2005 in a take-private from the Copenhagen stock exchange. Two unsuccessful IPOs were attempted in 2007 and 2008.

Towards the end of 2010, private equity firms began circling the asset. The owners imposed a deadline for final bids at the end of the year. Blackstone, Bain Capital, Clayton, Dubilier & Rice and Nordic Capital were thought to have worked on a joint bid, as did CVC and Apollo. Apax was understood to have made an independent offer for the firm.

The owners were thought to have entered into exclusive discussions with Apax Partners in December 2010 regarding the sale of the asset for around $8.5bn. But plans were scrapped in January 2011, with the owners looking to raise more capital via a flotation. The IPO was pulled in March 2011 due to market volatility.

Security firm G4S stepped into the picture in 2011, leaving EQT and Goldman Sachs to mull a trade sale. A £5.2bn sale was announced in mid-October, but the unlucky streak continued for ISS when the potential buyer withdrew its offer, which was contingent on attracting the support of 75% of G4S shareholders, in November.

In 2012, ISS received a €500m investment from Ontario Teachers' Pension Plan and KIRKBI Invest, designed to reduce the firm's debt. EQT did not sell any shares in the firm and remained a majority shareholder.

In 2013, Agilitas Partners backed the MBO of ISS division ISS Damage Control from the parent company.