ISS Spain: A Growth Strategy Built on Acquisition and People

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ISS Facility Services Expands in Spain Through Strategic Acquisitions and Strong Local Leadership

Since ISS Facility Services began operating in Spain, the Danish multinational specializing in cleaning, maintenance, and auxiliary services has acquired more than seventy companies in the country. This pattern of consolidation is deeply embedded in the company’s approach. Notably, Javier Urbiola, who leads the Spanish division as CEO and president, joined ISS through an acquisition.

In 2001, Urbiola co-founded a project named Unique, which aimed to buy and integrate three cleaning firms. He recalls that twenty years ago the sector was highly fragmented and underprofessionalized, leaving room for consolidation. The team sought venture capital, built the project over three years, and eventually sold the venture to ISS, a company that itself was founded only a few years earlier, in 1999. When asked about his tenure, Urbiola notes that he did not anticipate staying with the company for so long. He has grown with ISS, directing the Spanish division since 2017. In Unique, the group generated 170 million euros in revenue. Under ISS, local turnover rose by 7.8 percent in the previous year, approaching 600 million euros in revenue, with a continued upward trajectory. The company’s market capitalization surpasses 22.4 billion euros.

The headquarters of the Spanish operation are located in Sant Cugat del Vallès, near Barcelona, and cover more than 2,800 square meters. The Spanish arm employs about 180 people, while the group as a whole counts roughly 35,000 employees, ranking as one of the largest employers in Spain.

Industries Served: Industry, Healthcare, and Office Environments

Nearly 80 percent of ISS Spain’s revenue comes from cleaning services, totaling around 472 million euros. Maintenance accounts for 15 percent, about 92 million euros, and auxiliary services represent just under 5 percent, or roughly 29 million euros. In recent years, the company has phased out its in-house catering and security services, though these can still be provided through subcontracting. About 75 percent of ISS Spain’s clients are private, spanning industry, healthcare, and office settings.

The market capitalization of the group stands above 22.428 billion euros, and the Spanish subsidiary contributes about 6 percent of the total global turnover. Spain is the sixth-largest market within ISS, by payroll and revenue, and accounts for around 10 percent of the company’s total workforce. This distribution reflects a lower average cost per employee in Spain, while underscoring a core corporate value: the people who work there and their working conditions.

ISS emphasizes timely compensation, with wages paid by the end of each month. The CEO highlights the importance of fair pay, especially for employees supporting families and mortgages. The company welcomes regulations that benefit workers and supports salary adjustments aligned with minimum wage increases, considering such measures advantageous to the overall strategy. In his view, a favorable regulatory environment enhances employee welfare and strengthens operations.

Looking back, Urbiola reflects on integrations. Some acquisitions did not perform as hoped, necessitating divestitures. Yet the overall ratio remains favorable. His years with the company have shaped a candid perspective: growth has not always meant pursuing the largest volume but achieving credible leadership in the sectors where ISS operates—cleaning, maintenance, and auxiliary services. The firm acknowledges that larger competitors may run bigger portfolios, especially in catering and security, but ISS has chosen to focus on its core strengths.

Ongoing Integrations and the Path Forward

Urbiola notes that integrating new acquisitions is the real challenge. Although acquisition is straightforward, the real task lies in smooth post-merger integration. The objective is to ensure that sellers and new employees feel welcomed and valued within the organization. This approach supports rapid integration so the acquired entities begin contributing to performance quickly and without disruption.

For ISS, the strategic aim remains clear: continue buying and integrating businesses that fit within the company’s established segments. Future acquisitions will be evaluated based on the central guidance from headquarters in Denmark, where the corporate hub resides. The group has recently signaled that it aims to pursue orderly growth through targeted purchases, reserving capital for markets where the central office knows operations are well managed. In Spain, a notable recent acquisition was the Grupo Fissa, a cleaning company based in Extremadura with multiple delegations across the country.

Without revealing specifics, Urbiola indicates that upcoming purchases are likely to occur in Madrid, Barcelona, and other major cities across Spain, with a continued emphasis on the cleaning sector as the primary growth engine. This strategy is expected to support ongoing expansion while maintaining focus on core capabilities and solid integration practices.

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