For personal use only ASX Announcement 2 February 2015 Spotless acquires Australia’s leading air-conditioning and mechanical services provider - AE Smith Spotless (ASX: SPO) is delighted to announce that it has signed a conditional acquisition agreement for the purchase of Australia’s leading air-conditioning and mechanical services provider AE Smith. Spotless Chief Executive Officer and Managing Director, Mr Bruce Dixon said: “AE Smith is our fourth strategic acquisition over the last 6 months. The AE Smith acquisition will allow us to enhance our integrated service offering to customers, increase our in-house delivery (instead of subcontracting) and improve our margins. AE Smith has a rich history with over 117 years of heritage (established in 1898). AE Smith has annual service and maintenance revenues of over $100m and approximately 665 employees across 10 locations throughout Australia, AE Smith’s scale will make a significant contribution to Spotless going forward”. Mr Dixon said that: “I am excited by the opportunity to further strengthen our capabilities by providing air-conditioning and mechanical services to new and existing clients directly, reinforcing our position as Australia’s leading and integrated facility services provider. AE Smith provides Spotless with a platform for growth into technical services across a range of sectors including health, government, industrial and commercial”. Spotless Chairman Ms Margaret Jackson said: “This outstanding acquisition builds upon our strategy of acquiring high quality, market leading businesses. As Australia’s premier airconditioning and mechanical services provider, AE Smith will deepen Spotless’ service offering, bringing significant scale and growth opportunities. The acquisition will be funded from our existing facilities, whilst retaining dividends at 65-75% of adjusted NPAT from FY15”. Ms Jackson said: “As I have previously stated, the Board is committed to striking the right balance between disciplined investments and providing returns to shareholders via dividends. We will continue to consider strategic acquisitions of high quality businesses that supplement our strong underlying organic growth and generate the best return for our shareholders”. The transaction is expected to complete by the end of February 2015, subject to certain conditions being satisfied. We are pleased that current CEO David Willett, will continue to lead AE Smith in serving its client base across Australia. “AE Smith is characterised by an established brand and heritage, high quality people, strong safety culture, high degree of recurring service and maintenance revenue and, together with Spotless, has excellent growth opportunities,” Mr Dixon said. Spotless Group Holdings Limited ABN 27 154 229 562 549 St Kilda Rd, Melbourne VIC 3004 Australia www.spotless.com Page 1 of 2 For personal use only “I look forward to working with the AE Smith team as we continue to grow Spotless as Australia’s leading provider of outsourced facilities services". Enquiries: Danny Agnoletto Chief Financial Officer T +61 3 8399 7086 Page 2 of 2