Deal focus: Samara backs facilities services buy-in

Samara Capital Partners sees facilities management services as an industry poised for a take-off. Expanding financial and information technology (IT) resources in India mean that large numbers of offices are expected to look for custodial services, and an experienced manager with solid PE support could carve out a very strong position in the early going.

“We believe there is a very long runway ahead for the industry, and we were looking for a platform to start off with, along with a very credible team which has been there and done that,” says Paurush Roy, managing director with Samara.

Jolly Kochery provided the team, having recently returned to Blue Bell Integrated Facility Services, the company he founded in 1996, after 10 years as India head of ISS Integrated Facility Services. Kochery was receptive to Samara’s overtures, seeing the PE firm as a source of capital for the acquisition strategy he saw as crucial for future progress.

“If you want to be a really sizeable player in this market, it will take a long time to attain a critical mass through pure organic growth,” says Kochery. “So from day one I was always thinking of how we could acquire some companies, integrate and bring them to our platform to gain a critical mass and then grow our geographical spread and become a true pan-India player.”

Kochery helped with the latest stage of Samara’s plan as well, setting up the $20 million purchase of Sanjay Management Services (SMS) through his acquaintance with the owners. Blue Bell has merged with SMS and Kochery’s management team has taken over the combined business. Samara has committed an additional $30 million to support growth.

The merger has brought some immediate benefits on both sides. Blue Bell’s former managers can tap the resources and reputation that SMS has built up since its founding in 1968, including its ties with some of India’s most prominent financial services and IT companies.

SMS, meanwhile, has gained Blue Bell’s expertise in mechanical, electrical and plumbing (MEP) as well as heating, ventilation and air conditioning (HVAC). Kochery’s team will also bring over the work they are doing with Belgian company Mobile Control Systems, which is developing a mobile app for the company to replace its cumbersome paper documentation.

At the moment management is focused on using Samara’s capital for acquisitions that will expand the company’s geographical reach from its base in western India, and for the creation of training programs for its 16,000 employees. Management sees the last point as particularly important in unlocking SMS’s true potential.

“Our ability to invest in our people, provide them training, and improve their skillset is the real differentiator,” Kochery says. “We are investing in their skill development in order to move away from a headcount-based operation to an SLA [service level agreement]-driven operation, which will benefit both the customer and the company.” 
 

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• Topics
• South Asia
• Buyouts
• Support services
• India
• Samara Capital