Janitorial Firms Merge Operations San Francisco-Based Chain Buys Allied Janitorial Service

The two largest janitorial companies in Spokane have merged, creating a giant cleaning service that controls 60 percent of the market.

Allied Janitorial Service of Spokane, with 325 employees and 180 accounts, on Thursday was sold to American Building Maintenance Co. for an undisclosed amount.

ABM in Spokane is part of a San Francisco-based company, which generates more than $1 billion in annual sales nationwide.

With the addition of Allied, ABM will employ 600 people and post annual billings of about $10 million.

The combined company will hold the cleaning contracts for the majority of office buildings and supermarkets in Spokane and Coeur d’Alene, including the Spokane International Airport, Hewlett-Packard, Spokane County Courthouse, Rosauers Supermarkets and Seafirst Financial Center.

The sale ends weeks of speculation that raised concerns among property owners that ABM would raise prices after gobbling up its chief competitor.

But ABM manager Cheryl Forbes said Friday that the merger will reduce the threat of price hikes.

“This should result in more cost savings and efficiency,” she said. “We’re certainly not out to gouge our customers.”

Allied owner Dave Watkins, who grew the company from a mop-and-bucket operation to the city’s largest janitorial service, said the merger makes sense for customers. Property owners will get the benefit of Allied’s proficient night crews and ABM’s daytime customer service representatives.

Watkins said he sold the company because he tired of warring with ABM, which often resulted in bidding to clean buildings at a loss.

The merger leaves one giant company and dozens of smaller, competing firms who hope to repeat Watkin’s success.

“The competitors are still out there hammering at us,” Watkins said. “We still have to be razor sharp; it’s a whole new challenge.”

One of those challenging the giant is Will McGurk, who manages National Maintenance Contractors in Spokane. McGurk said he’s thrilled about the merger because it provides an opportunity for him to woo Allied customers who do not like ABM.

“They just inherited a lot of problems as far as I’m concerned,” McGurk said. “I’m loving it.”

But at least one big Allied customer said the merger is no big deal. Richard Salsbury, vice president of retail services for Rosauers, said that as long as Watkins stays with ABM, so will Rosauers.

“He’s done it with personal energy and I think the world of Dave,” Salsbury said.

Watkins said he has a financial incentive to work for ABM for at least five years. A portion of the purchase price, he said, is tied to the performance of accounts he will oversee through the year 2000.

Janitorial Supply Co. in Spokane, which Watkins also owns, was not part of the deal. Watkins said he plans to sell half of that company to top managers.

In addition, Allied’s 15 accounts in Lewiston and Moscow will be sold to a local competitor not related to ABM.

, DataTimes