8 March 2018 | Herpreet Kaur Grewal
Canadian company Brookfield Global Integrated Solutions (BGIS) has exited a deal to buy a large swathe of contracts from collapsed support services and construction firm Carillion, leaving 2,500 FM jobs in limbo.
BGIS, a global real estate and FM services provider, said that its previously announced agreement to acquire a portfolio of Carillion FM contracts in the UK will not be proceeding, "as certain closing conditions have not been met".
Gord Hicks, CEO of BGIS, said: "While we are disappointed at this outcome, we are continuing to pursue opportunities to grow our global business into the UK and welcome continued dialogue with prospective customers as we build out our platform for future growth opportunities."
A statement from the government's Insolvency Service said: "The agreement with BGIS was conditional on ongoing support from customers for continued provision but this could not be secured. Transfers of other FM contracts following sale agreements are continuing."
A spokesman for the government's Insolvency Service told FM World that the jobs of the 2,500 FM staff affected by the new development "are safeguarded for now".
He added that the government could not guarantee that customers of the contracts would seek other suppliers to deliver FM services, as it continues looking for active purchasers.
In February, BGIS announced that it would acquire a portfolio of UK contracts for delivery of services in the hospital, education, justice, transport and emergency services markets subject to closing conditions.
In January 2016, BGIS said it would acquire the remaining 50 per cent of the Canadian and Australian facilities management businesses from Johnson Controls Inc. Both companies previously held the businesses in a joint venture arrangement.