Group 4 Falck to Sell Wackenhut Correctional Facility Unit
Danish security firm Group 4 Falck said it plans on selling its stake in the corrections and staffing businesses of Wackenhut Corp., according to The Daily Deal. Group 4 of Copenhagen acquired the Palm Beach Gardens, Fla., security company in March for $573 million, entering the U.S. market for the first time. It is the country’s second-largest security company behind Securitas AB of Sweden.
Lars Norby, CEO of Group 4 Falck, said he hopes to get $250 million for the businesses, which include Wackenhut’s Resources Inc. and its 57-percent stake in Wackenhut Corrections Corp., which runs prisons worldwide, said the publication.
Mike Thompson, who follows Wackenhut at Auerbach Grayson & Co., told the publication that the company had no intention of keeping the corrections business when it made the original deal with Wackenhut. “The corrections business was always described as noncore,” he said. “When [Group 4 Falck] bought Wackenhut, they bought it for the securities services business—the alarms and guarding business.”
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