NXP and The Service Company join forces NXP’s acquisition of The Service Company is set to create a facilities and cleaning powerhouse for the local industry.
Above: Ian Jemmett, chairman and GM of The Service Company 26 INCLEAN NEW ZEALAND November 2020
XP, the largest supplier of businesses and cleaning products to the corporate and government sectors, has completed an agreement to purchase The Service Company. The Service Company, and its South Island entity Proclean Reward, is New Zealand’s largest mid-market facilities supplies firm. From small beginnings more than 20 years ago, The Service Company has grown into a multimillion-dollar business servicing all types of organisations nationally. The Service Company is headed by Ian Jemmett, who will continue with the organisation as chairman and general manager. “Together, NXP and The Service Company will be the largest facilities and cleaning supplies organisation in New Zealand,” says Jemmett. “It will be business as usual for our customers, but the combined companies will create a facilities and cleaning supplies powerhouse in New Zealand.” The deal will see NXP vertically integrate its local operations to include bulk manufacturing, environmentally conscious cleaning and hygiene products and increase its B2B customer base by thousands – including export markets in Australia and the Pacific Islands. The Service Company has a presence in Auckland, Wellington, and Christchurch and supplies 20,000 multi-braded product lines to a database of more than 25,000 customers
nationwide including fast food restaurants, airports, cleaning companies and franchises. “At The Service Company we believe extremely strongly in a high level of customer service and interaction, not just with the decision makers of the businesses we serve, but with all staff within the company,” says Jemmett. “From business owners through to the cleaning staff on the frontline, we want to serve everyone equally and that level of interaction has been key to our success.” He says the business has grown around 600 per cent over his 15-year tenure as CEO and demand for cleaning and hygiene products during COVID has seen budget targets exceeded by more than 180 per cent in a single month. Jemmett says while other competitive offers to purchase the company were on the table, NXP was the most well-aligned strategically, with the merger to “play to the strengths of each organisation”. “We have had a tremendous period of rapid growth and the team has had to work incredibly hard and incredibly long hours. Like our own business, NXP has had significant growth – particularly in the past year as it had leveraged supply chains to become an essential service provider of cleaning products. “While both organisations operate across different industry sectors, NXP’s strength is at a corporate and government level while The Service Company meets the janitorial supply needs of mid-market businesses across New Zealand.