Someone somewhere must be happy to buy shares in Spotless Group - but it isn't us

Intelligent Investor

Independent Financial Research

Someone somewhere must be happy to buy shares in Spotless Group - but it isn't us. Spotless was taken private by Pacific Equity Partners in 2012 and already they're back trying to offload half the company. You might think that two years isn't enough to turn a business around and you'd be right. Spotless is Australia's largest provider of outsourced business services. It does a lot of stuff, and it's all stuff companies would do themselves if they couldn't get it done cheaply by someone else, so there's not a lot of margin in it. This float has the look of private equity trying get half their money out before the job is finished. If they were really confident of delivering the planned improvements over the next couple of years then they'd surely wait until then to sell their investment. We'll watch this one from a (considerable) distance. (VIEW LINK)


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Independent Financial Research

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