The deal with SGS

ECOSERV and Swiss giant SGS conclude groundbreaking deal

In a deal of unparalleled significance to ECOSERV and its customers, Swiss-owned giant SGS recently concluded an agreement to purchase the Durban-based company, effective immediately.

Registered in Geneva in 1919 as Société Générale de Surveillance, SGS was originally founded in 1878 as a French grain shipment inspection house. Today SGS sets the global benchmark for quality and integrity and is recognized as one of the world's top contender in its core services of inspection, verification, testing and certification.

Mike Fahy, Senior Vice-President Environmental Services, left his Geneva HQ in August to sign the deal with ECOSERV MD Quentin Hurt in Durban, accompanied by Africa country environmental managers, Andrew Hester (Ghana), Phillip Abuor (Kenya) and Roland David (Tanzania).  The new team was probably more interested in making plans to deal with the opportunities that the new arrangement presented than in signing contracts but remarkably the two tasks were done simultaneously.

“SGS arrived at a time when we were planning to expand our service base in Africa”, said Quentin .  “Their network and the quality of work were very attractive to us.  We clearly recognise the challenge of being a relatively isolated organisation and we are looking forward to being part of a bigger team, working with specialists in other environmental fields and learning from specialists around the world.  For us it is simply the right move at the right time that bodes well for our staff and our clients.”

 “I was truly impressed by the quality of ECOSERV's people and products,” said Mike shortly after sealing the deal. “One of the appealing aspects of the company is the innovative way the team has faced the problems of working in difficult, remote locations, yet still manages to provide customers with real time, quality data.”

Mike says joining forces with ECOSERV was a natural progression for SGS – and one which promises to be a symbiotic relationship.

“If you look at SGS as an organization, we are a full service provider in the environmental analysis field. We do environmental work throughout the African continent, servicing West Africa out of Ghana , East Africa out of Kenya , Central Africa out of Tanzania , and the southern region out of South Africa . But the premier air monitoring group in Africa is ECOSERV. Hence this was a natural union. I am very excited about this deal and think it is good for SGS and all the people in ECOSERV.”

ECOSERV customers will also benefit from the buy-out. In joining the SGS fold of over 1000 offices and laboratories worldwide and 48 000 members of staff, ECOSERV will be able to offer customers an extended range of services and expertise.

“ECOSERV customers have already attended a seminar on dioxins, which pose a potential risk to public health, presented by our recognized expert from Belgium ,” says Mike. “The fact that customers will benefit from the deal is as exciting to Quentin as the capability of ECOSERV in Africa is to me.”

South African Andrew Hester, who has been at SGS Ghana for two years, says the deal is a win-win situation. “We are looking forward to having access to ECOSERV's expertise, particularly in air quality and air emissions testing. This is very much a core strength that ECOSERV will bring to the group in Africa . Previously, India did our emissions testing and it is more financially competitive to use SA. There are many opportunities for SGS to offer new services in Africa and for ECOSERV to expand their work in Africa . Everyone is excited to move forward.”

Phillip Abuor says the deal could not have come at a better time. “Kenyan legislation is tightening up on environmental law and emissions and we have a lot of increased interest in air quality,” says Phillip. “While we don't have a lot of experience in it, ECOSERV is very strong in this field. My colleagues are motivated to come to South Africa and exchange expertise. This will be a great opportunity for staff on both sides.”

In time ECOSERV will change its name to SGS ECOSERV , which allows it to maintain its branding and identity while at the same time let people know that there have been changes. SGS ECOSERV will continue to operate out of the Westville head office and telephone numbers and e-mail addresses will remain unchanged (although additional SGS email accounts are immediately operative).