Coffeeshop operator Kimly has entered into the cleaning services industry through the acquisition of a 60% stake in Klovex for a consideration of $1 million.
The sale and purchase agreement was signed on April 1 by Kimly’s wholly-owned subsidiary Chodee Food Holdings.
The consideration will be partly satisfied by cash of $700,000, and partly by the issuance of 1 million new shares in the capital of Kimly at the issue price of 30 cents per share.
Klovex, which is incorporated in February, is a general cleaning solutions provider in Singapore. The company covers commercial and residential facilities management, food and beverage (F&B) facilities management and dishwashing operations and deep-cleaning solutions.
It has an issued and paid-up share capital of $5,000 comprising 5,000 ordinary shares.
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The vendors of Klovex, Ng Yong Kiat and Matthew Khoo Lang You, who own a 50% stake in Klovex each, have been in the cleaning business since 2015. It currently has 100 professionals under its employ and 40 cleaning contracts under its management.
According to Kimly, the rationale of the acquisition stems from the increased emphasis on hygiene and cleanliness brought about by the Covid-19 pandemic. The acquisition presents Kimly with the opportunity to increase its general presence in the cleaning services industry and increase its revenue streams.
Kimly will also be able to leverage on Klovex’s expertise in heightening its hygiene standards in its existing businesses and food outlets.
Based on the valuation report dated April 1 issued by Cushman & Wakefield VHS, the market value of a 100% equity interest in the cleaning business is between $1.4 million to $1.7 million.
Shares in Kimly closed flat at 30.5 cents on April 1.
