G4S Strikes Deal to Be Acquired by Allied Universal for $5B
Combining G4S and Allied will create a global security company with about $18 billion of annual revenue and a workforce of more than 750,000.
LONDON — G4S Plc, based here, has reached a deal to be acquired by Allied Universal Security Services for $5.1 billion (3.8 billion-pound), after initially rebuffing a takeover bid from Allied Universal in November.
G4S first announced Oct. 9 that it had received an expression of interest from privately-held Allied Universal for a possible offer for the company. Canada’s GardaWorld had also put forward an offer of $2.48 (190 pence) a share for the company, which also been rejected.
Allied boosted its offer to $3.26 (245 pence) per share, according to an announcement. G4S directors plan to unanimously recommend the deal to shareholders.
The offer beat out Garda’s latest proposal of $3.13 (235 pence) per share and represents a 68% premium to G4S’s last close before announcing the initial takeover approach. Allied has committed financing and signed a preliminary agreement for future funding of G4S’s pension scheme, according to the announcement.
Combining G4S and Allied will create a global security company with about $18 billion of annual revenue and a workforce of more than 750,000. The companies expect to close the deal in the first quarter of 2021, according to the announcement.
Bringing together Allied Universal’s and G4S’s cutting-edge smart technology solutions and manned guarding businesses will create an Enlarged Group that is able to lead the industry shift towards integrated security services and provide a global one-stop shop for customers, the announcement states.
“G4S has been transformed into a focused global leader in security services with market-leading solutions and a blue-chip customer base that is served by a dedicated and talented team of over 530,000 employees,” G4S CEO Ashley Almanza states. “The combination of G4S and Allied Universal creates the global leader in security with over 750,000 employees, industry leading capabilities and unrivalled market coverage. This unique and compelling combination will offer customers exceptional service and provides employees with an exciting future.”
Garda can still come back with a counter offer.
G4S is being advised by Citi, J.P. Morgan Cazenove, Goldman Sachs and Lazard.
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