NEW YORK – Blackstone Group, the parent company of Vivint, agreed to sell its security services business, AlliedBarton, to French investment firm Wendel for about $1.67 billion, including debt.
Blackstone has been planning to sell Philadelphia-based AlliedBarton since March, hiring investment bank Credit Suisse Group AG to run an auction. The company provides security guards to industries such as health care, government services, petrochemicals and retail. It was purchased by Blackstone in 2008 from Ronald Perelman’s MacAndrews & Forbes Holdings for about $750 million.
With more than 60,000 employees and 120 regional offices throughout the U.S. serving more than 3,300 clients, AlliedBarton has grown substantially during the seven years it has been under the Blackstone umbrella.
“It has been a privilege partnering with [AlliedBarton President and CEO] Bill Whitmore and the exceptional management team at AlliedBarton in supporting their efforts to build the preeminent security services firm in the U.S.,” says Peter Wallace, senior managing director, Blackstone. “We are very proud of the accomplishments and significant value that has been created under our ownership, during which the company substantially grew revenues, profitability and employment.”
Under the transaction, Wendel will make an equity investment of about $670 million for acquiring 96% stake in AlliedBarton with the remaining stake owned by AlliedBarton’s management, according to Zacks.com. The deal, which is anticipated to be closed at year-end, is subject to customary regulatory approvals.
With an adjusted EBITDA of $148 million and a free cash flow conversion rate of greater than 95% along with revenues of about $2.18 billion as of March 31, AlliedBarton presents an attractive opportunity for Wendel to capitalize on the growing market for outsourced security officer services in the U.S., Zacks reported.
