Paramount Services And Cleanup Group Merge

Paramount Services And Cleanup Group Merge To Extend Coverage For Nation-wide Clients

Auckland 24 September 2007 – Leading Auckland-based commercial cleaning company Paramount Services and Tauranga-based Cleanup Group have merged to extend coverage for nation-wide clients.

Paramount Services managing director Galvin Bartlett says the merger combines his company’s strengths in Auckland, Wellington and Christchurch with Cleanup Group’s strong customer base in North Island regional cities and Wellington.

“Our strategic intent is to extend our coverage for nation-wide clients with branches throughout the country.” Combined, Paramount Services and the Cleanup Group have about 325 staff plus 60 franchise business owners with a further 300 staff serving about 800 clients throughout New Zealand.

Mr Bartlett said the merged company would be administered from Auckland where Paramount Services has well established accounting and support services. He said Paramount Services’ successful franchise model will be extended to Cleanup Group clients and staff.

Cleanup Group managing director Brett Hickisey said the company had grown rapidly since it was established in September 2001 by his parents-in-law Trevor and Linda Byers.

“We have grown a very successful family company with good staff but to get to the next level we needed more back office and support structures. This merger will allow the growth of both groups because we will be able to service nation-wide clients from well established bases.”

As a former business franchisee owner Mr Hickisey said he was also impressed by the Paramount Services franchisee system which “is unique and encourages franchisees to grow.”

Trevor Byers, who has 30 years’ commercial cleaning industry experience, said the company merger was a merger of personal friendships with Galvin and Sue Bartlett, the couple who founded Paramount Services in 1979. “I’ve known Galvin and Sue Bartlett many years.”

Paramount Services purchase of Cleanup Group follows its acquisition of Auckland-based commercial cleaning company Office & General in February 2005.

Mr Bartlett said commercial cleaning is ideally suited to franchising and he predicts that over the next decade more than 50 per cent of commercial cleaning in New Zealand will be serviced by franchisees.

Currently less than 10 per cent of New Zealand’s estimated $750 million per annum worth of commercial cleaning is franchised. The rest is split between multinationals, mid-sized companies and “ma and pa” cleaning businesses.

Franchise New Zealand estimates there are about 350 franchise systems in New Zealand and about 20,000 franchisees. A 2001 National Bank survey estimated the annual turnover of the franchise sector to be $10.4 billion with about 70,000 people working in franchised businesses.

ENDS

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