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Facilities Services Industry Update Q4 2022

Read more about M&A trends and activity in this sector

Facilities Services Sector Update

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Facilities Services Overview

Participants in the facilities services sector include providers of solutions such as pest control, remediation, HVAC, exterior and interior services, roofing, landscaping, property management, security solutions, and other route-based facility services. Key players are categorized as noted below:
Sub-sectorPublic Revenue / EBITDA MultipleDescriptionKey Players

Facility Management Services

0.98x / 13.0xIncludes companies offering diversified commercial facility management services
  • ABM Industries
  • Aramark
  • Comfort Systems USA
  • EMCOR
  • ISS
  • Sodexo
  • SP Plus
  • UniFirst

Route-Based Facility Services

3.19x / 16.2xCompanies offering route-based facilities services
  • BrightView Holdings
  • The Brink's Company
  • Cintas
  • Ecolab
  • Iron Mountain
  • Rentokil Initial
  • Securitas

Route-Based Waste Services

4.05x / 16.7xCompanies offering route - based environmental and waste management services
  • Casella Waste Systems
  • GFL Environmental
  • Republic Services
  • Stericycle
  • Waste Connections
  • Waste Managements

Sector Perspectives

The Global Facilities Services Industry is a $55bn Market with Significant Drivers for M&A Growth

  • The global facilities services market reached a value of $55 billion in 2021 and is projected to grow at a CAGR of ~13.4% to ~$117 billion through 2027E
  • Companies continue to turn to alternative outsourcing solutions for non-core facilities functions such as property management, janitorial and security management, and other services
  • Subsectors within the industry remain highly fragmented as key regional and national players continue to compete with smaller local / regional private companies
  • Investor interest in facilities services businesses remains high and M&A momentum is expected to continue given the fragmentation of the market and recurring nature of revenue streams, among other attractive macroeconomic tailwinds
  • In 2H 2022, PE-backed facilities services companies were particularly active acquires
  • Portfolio companies backed by the Carlyle Group (Sciens Building Solutions) and Atlas Partners (Pye - Barker Fire & Safety) both completed over two acquisitions in 2H 2022
  • Overall, optimism remains high that the facilities services M&A market will continue to remain strong in 2023

Notable PE-Backed Facilities Services Transactions, 2H 2022

DateTargetBuyer

Pending

Action One Alarm

Pye-Barker Fire & Safety / Altas Partners

Dec-22

Justice Fire & Safety

Pye-Barker Fire & Safety / Altas Partners

Nov-22

ComTronix

Pye-Barker Fire & Safety / Altas Partners

Aug-22

Fire Alarm Control Systems

Sciens Building Solutions / The Carlyle Group

Jun-22

Elite Fire Safety

Sciens Building Solutions / The Carlyle Group

Facilities Services Public Markets Update

LTM Facilities Services sectors performance has outperformed relative to the S&P 500 (-19.4% as of Dec-22)

Sub-sectorsPerformance (1/1/22 - 12/31/22)Mean EV/LTM EBITDA Multiples
Facility Management Services6.8%
13.0x
Route-Based Facility Services13.2%
16.2x
Route-Based Waste Services7.8%
16.7x
S&P 50019.4%-

2022 Indexed Stock Performance

Financial Metrics2 for Facilities Services Peer Groups (12/31/2022)

EV/LTM RevenueEV/LTM EBITDA

Footnotes

Market statistics sourced from Capital IQ and based on 12/31/2022. Industry data sourced from publicly available information

  1. Valuation Multiples represent Enterprise Value to LTM Revenue and LTM EBITDA at 12/31/2022
  2. Financial metrics represent the average of constituents reporting in respective category

We hope you find this information valuable, and as always, feel free to reach out if you would like to discuss in further detail. To read the full report, download the PDF below.

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Facilities Services Sector Update

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