R.G.A Secures Up To NIS 122 Million Contract Renewal

R.G.A Services, a company specializing in cleaning and sanitation, has announced its fifth contract win of the year, securing a tender for open space cleaning services with a local authority. The deal, which includes option periods, could reach a total value of approximately NIS 122 million. The initial contract is for three years, with the possibility of a two-year extension, potentially extending the total duration to five years. R.G.A estimates annual revenues from this contract to be around NIS 24.4 million.

It is important to note that this is not a new client but a renewal of a previous agreement with the same authority. Therefore, the full NIS 122 million does not represent entirely new business but rather the continuation of an existing relationship. The primary significance for R.G.A lies in maintaining a long-term engagement and securing visibility for its core operations.

R.G.A's business model heavily relies on multi-year tenders with local and governmental bodies. While these long-term contracts provide revenue stability, they also demand continuous investment in personnel, equipment, and operations. Profitability hinges on tender conditions and effective cost management throughout the contract period.

Daniel Leventhal, Chairman of R.G.A, stated that the win reflects the local authority's confidence in the company's proven experience, high service standards, and long-term commitment. He added that the company will continue to invest in advanced services, quality equipment, and professional staff to be a true partner to the authority and its residents.

The company currently boasts a significant order backlog of approximately NIS 1.46 billion for 2026-2029, following its acquisition of Yosef Morris. R.G.A, operating since 1987, serves around 40 local authorities, including eight of Israel's ten largest municipalities, with a fleet of hundreds of waste trucks and other specialized equipment, employing approximately 2,300 workers.