Today marks the official merging of CWS-boco and Initial. Both companies are leading international service providers in the fields of workwear, washroom care and cleanroom solutions. The aim of the joint venture is to become the market leader across Europe.
The EU Commission has granted its approval for the joint venture between CWS-boco and Initial on the European markets. The merger will create a company operating in 16 European countries with a workforce of around 10,800 employees and generating approximately € 1.1 billion in turnover. CWS-boco is bringing its complete business in 16 countries to this venture and Initial its business in 10 Central European countries. The joint venture comprises the following countries: Austria, Belgium, Bulgaria, Croatia, the Czech Republic, Germany, Hungary, Ireland, Luxembourg, the Netherlands, Poland, Romania, Sweden, Switzerland, Slovakia and Slovenia. Until further notice, CWS-boco and Initial will continue business as normal within their organisation.
The two companies will be united under the umbrella of the CWS-boco Group headed by CEO Thomas Schmidt. He will assume the role of Max Teichner, who announced his decision in April to leave the company after the start of the joint venture. Thomas Schmidt is member of executive board of the shareholder Haniel. In the future he will also lead the joint venture at the same time.
Innovation leadership and advantages for customers
The declared goals are to be closer to the customer, address different customer requirements more closely and drive forward innovations. As a result of the merger, the joint venture will have an even more consolidated service network of laundries and service drivers in the future, allowing it to supply customers more flexibly and quickly. “We are delighted that we can now start setting up the joint venture. One thing is certain: Our customers will now benefit from the bundled expertise and experience of both companies,” explained Thomas Schmidt, CEO of the CWS-boco Group.
Thanks to this merger, the joint venture will be able to enhance its innovative strength in the future. For example, the wireless technology which is already in use in washroom dispenser systems is to be further developed together. This system notifies cleaning personnel about fill levels, provides information on consumption and thus improves the efficiency of working processes. The company also uses modern UHF technology in its laundries, which results in more transparent processes and, in turn, a further increase in service quality for customers.
The formation of the joint venture was announced by CWS-boco's shareholder Haniel and Rentokil Initial back in December 2016. Following the granting of approval by the European monopoly authority, Haniel will hold 82% of the shares in the joint venture and Rentokil Initial 18%. The company headquarters will be in Duisburg, Germany.