Kimly acquires 60% stake in cleaning-services firm

CATALIST-LISTED Kimly has acquired a 60-per-cent stake in cleaning-services firm Klovex Holdings, intending to tap its expertise for Kimly's existing businesses, the coffeeshop operator said in a filing on Thursday evening.

The sale-and-purchase agreement was inked between Kimly unit Chodee Food Holdings and Klovex Holdings, to acquire 60 per cent of Klovex's issued and paid-up share capital for a total consideration of S$1 million.

The purchase consideration will be satisfied by S$700,000 in cash and the issuance of a million new shares in Kimly, at S$0.30 per share.

Klovex is a general-cleaning solutions provider covering commercial and residential facilities management, F&B facilities management and dishwashing operations, and deep-cleaning solutions; it has 40 cleaning contracts under its management currently.

Kimly said the acquisition of Klovex is an opportunity to expand into the cleaning-services industry and increase revenue streams, adding: "The hygiene standards in the group's F&B businesses could also be enhanced beyond the Covid-19 outbreak, by leveraging the expertise of Klovex."

Kimly said that with this acquisition, the manpower crunch it faces in hiring professional cleaners could be eased.

Its directors said that the acquisition will enable Kimly "to ride on the growing trend for cleaning services" and deliver higher standards of cleanliness and hygiene at its operating premises.

Kimly shares closed flat at 30.5 Singapore cents on Thursday before the news.