The multi-national G4S reports that it has reached agreement on the sale of G4S Israel to FIMI Opportunity Funds (FIMI) for an estimated NIS425m (equivalent to £88m). FIMI is a Israeli private equity fund.
G4S says that it will retain a presence in Israel through ownership and continued investment in the flagship national police training centre Policity in partnership with FIMI and Shikun & Binui, an Israeli infrastructure and real estate group.
The sale is subject to government and customary regulatory approvals which are expected within the next three months. The firm says that the net proceeds will be used for general corporate purposes.
G4S Israel provides manned security and security systems across the country. In the year to December 2015, G4S Israel generated profit before taxation of £8m and, as at December 2015, it had gross assets of £56m. As part of the transaction, senior management in G4S Israel will remain with the business at completion.
Ashley Almanza, G4S Group Chief Executive Officer said: “The sale of our business in Israel is part of our active portfolio management programme announced in 2013 to improve our strategic focus and capital discipline. G4S Israel is a well-managed business that will grow and prosper as part of the FIMI group providing a positive future for our 6,000 colleagues in Israel and long term, high quality service and support to customers operating in the Israeli market.”
Protests against G4S for their work in Israel have included demos at the company’s annual meetings.
Meanwhile Rafeef Ziadah, speaking for the Palestinian Boycott, Divestment and Sanctions (BDS) National Committee (BNC), said: “We have succeeded to push one of the world’s largest corporations into selling its key business in Israel. Our globally coordinated campaign has had a real impact. We will continue campaigning until G4S ends all involvement in violations of Palestinian human rights.”
He claimed a domino effect: “Some investment fund managers are recognising that their fiduciary responsibility obliges them to divest from international and Israeli corporations and banks that are complicit in Israel’s persistent violations of international law.” The campaigners point to French multinationals, Veolia and Orange, and the Irish building materials company, CRH, as exiting the Israeli market since September 2015.
