Apollo Affiliated Funds Finalizes Deals for Protection 1 and ASG Security
Combining P1 with super-regional ASG Security will create a company with more than $40 million in recurring monthly revenue.
NEW YORK – The simultaneous acquisitions of Protection 1 and ASG Security by Apollo Affiliated Funds have been completed, the private equity firm announced. Transactions for both companies first became officially known in May.
Financial terms of the transactions were not publicly disclosed; however, an industry source close to the deal who asked to remain anonymous said Protection 1 sold for $1.525 billion. The total purchase price for both companies was approximately $2 billion, according to the source.
Apollo, which has roughly $163 billion in assets under management, will merge the two security firms. The newly-created company will continue to operate under the Protection 1 brand and will be led by P1 Chairman and CEO Tim Whall.
“Protection 1 has long been a unique asset in the security industry with our national footprint, full range of customer solutions and well-established reputation for service. The partnership with Apollo will continue to build upon that and continue to strengthen our position in the industry,” Whall said in a prepared statement. “The simultaneous acquisition of ASG Security enables us to create additional density in markets where we share a presence, as well as further extend our footprint where ASG has locations outside of the current Protection 1 footprint. We look forward to combining the strengths of both organizations.”
With the close of the transaction, P1 anticipates continued activity with additional acquisitions as the company looks to expand its geographic footprint and breadth of customer offerings, according to the statement.
Financing was provided by Credit Suisse, Barclays, Deutsche Bank, Jefferies and RBC. Paul, Weiss, Rifkind, Wharton & Garrison acted as legal adviser to Apollo; Latham & Watkins acted as legal adviser to Protection 1, as well as Reed Smith as legal advisors to the management team; and Kirkland & Ellis acted as legal adviser to ASG Security. Morgan Stanley and Raymond James acted as financial advisors to Protection 1 and Goldman Sachs acted as financial advisor to ASG Security.
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