G4S Government Solutions Goes Private for $135M
G4S Government Solutions has sold its firm to a private equity firm for $135 million. The deal does not include G4S Secure Solutions.
PALM BEACH GARDENS, Fla. – G4S Government Solutions (G4S GS), a provider of U.S. government solutions, has sold its business to an unnamed private equity firm for $135 million.
As part of the deal, G4S GS will change its name to Centerra Group, a global government and critical infrastructure services company, which executives say will become the largest American-owned provider of protective services to the federal government.
The sale also allows the company, which has been in business for 54 years, to broaden its service offerings and expand its customer base worldwide, according to a press release.
G4S currently provides security services to the Department of Energy, Department of Defense, Department of Homeland Security, Department of Justice, Department of State and other federal, state and local agencies and commercial clients worldwide.
Centerra President and CEO Paul Donahue noted that the deal gives the firm financial and operational flexibility to enter new markets, The Sun-Sentinel reports.
Sales for the company have been essentially flat due to federal government cuts. In 2013, the firm reported about $500 million in revenue.
Donahue said the sale will allow the company to evolve beyond security and fire support services and enter new markets such as nuclear plant and military base security.
Centerra also plans to launch multiple strategic divisions in the next quarter to better align with its projected portfolio of business. Specific divisions will include:
- National Security Protection
- Federal and Commercial Security
- Fire and Emergency Services
- Base Operations Support and Training
- Facilities Maintenance
- Fleet Maintenance and Construction Services
The sale does not involve G4S Secure Solutions, which provides security to commercial companies. Donahue told Sun-Sentinel that eventually, Centerra will compete with G4S Secure Solutions.
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