ISS sells its Turkish call center activities to the private equity manager Mid Europa Partners
ISS, a global leading facility services provider, has agreed to sell its call centre activities in Turkey to Mid Europa Partners, a leading buyout investor focused on the growth markets of Central and Eastern Europe and Turkey. The call centre activities of ISS in Turkey, which is named CMC (Customer Management Center), is a leading company in its industry with 4,110 employees and close to 4,000 computerised workstations, equivalent to around 8% of the Turkish industry capacity. In 2014, CMC had an annual revenue of over DKK 300 million at a margin above the ISS Group average.
Flemming Bendt, Regional CEO, ISS Eastern Europe, commented:
“While we are proud of our call centre activities in Turkey, in particular that our local management have grown the business multiple times over recent years, the reality is that these activities are not core to the long term strategy of ISS in Turkey. This divestment is part of the execution of our global strategy and alignment of our business platform.”
“We continuously review the strategic rationale and fit of our different service activities. Call centre activities are not a natural part of integrated facility services in Turkey, and there are few synergies between operating a call centre and delivering integrated facility services to our customers. CMC has more or less operated as a standalone service providing limited ability to leverage the strength of our Integrated Facility Services strategy. “
“We are confident that the transition of the call centre activities to Mid Europa Partners will be to the benefit of the employees and the customers of CMC. All relevant employees will transfer to the new owners, who intend to build on the strengths of the business.”
CMC was established in 2000 and today operates four call centres; in Sanliurfa, Malatya and two in Istanbul. The business has a diversified customer portfolio across the financial services, entertainment, consumer goods, automotive and retail industries.
ISS Turkey had an annual revenue of DKK 2,535 million and 29,913 employees in 2014. The divestment will have no effect on the remaining ISS service offerings in Turkey.
The parties have agreed not to disclose the financial details of the transaction. ISS expects to use the proceeds to further reduce debt.
The transaction remains subject to satisfaction of certain conditions precedent customary in a transaction of this nature.
3 Seas Capital Partners acted as M&A advisors and Yarsuvat & Yarsuvat as legal advisors to ISS Turkey on this transaction.
Source: ISS Press Release