Many businesses hope to clean up, but diversified facilities services contractor ABM counts on it. The company primarily offers janitorial services to owners and operators of office buildings, hospitals, manufacturing plants, schools, shopping centers, and transportation facilities throughout the US and in Canada and Puerto Rico. Through other units, ABM provides security services and maintains mechanical, electrical, and plumbing systems. Its Ampco System Parking operates more than 1,800 parking lots and garages, mainly at airports across 35 states, while ABM Security Services provides security officers and security systems monitoring services.
Like other conglomerates in the business services sector, ABM has grown mainly by acquiring local and regional operating companies and their client rosters. It has also stayed focused on strengthening its core cleaning, parking, and security services operations. ABM generates cost savings by centralizing many business functions, such as marketing, sales, and accounting.
This strategy also allows ABM to increase sales by more effectively leveraging its diverse portfolio of service offerings. Such a strategy appears to be working. In 2011 ABM reported an increase in earnings by $4.4 million (or 6.8%) to $68.5 million, up from $64.1 million in 2010, primarily related to revenues associated with several recent acquisitions.
In a transaction it hopes will vault the company into the Fortune 500 in the coming years, ABM purchased California-based facilities services company The Linc Group for nearly $300 million in cash in 2011. ABM rolled TLG's operations into its engineering division. The combined engineering operations boasts close to $1 billion in annual revenues.
ABM strengthened its janitorial segment through the 2010 acquisition of Diversco, a provider of outsourced facility services serving industrial and manufacturing clients, for about $30 million. The deal broadened the segment's client base and geographic reach, and added security services to its list of offerings. Also in 2010 Ampco System Parking purchased the assets of several small parking companies. The acquisitions stretched the reach of Ampco's service in major urban areas such as Chicago, Philadelphia, and Boston.