After months of toing and froing about offers from rivals, the security contractor G4S plc has agreed to a take-over offer by the North American firm Allied Universal. The offer, of shares at 245 pence, puts the value of G4S at £3.8 billion.
The two firms will make the largest contract security firm, with a workforce of about 750,000; of those, G4S’ are about 530,000. John Connolly, Chairman of the G4S Board described G4S as a global leader in security services. “Under [chief executive] Ashley Almanza’s leadership, the business has been fundamentally refocused and re-positioned to address long-term growth in security markets, with an unmatched market footprint, strong brand and industry-leading capabilities. The G4S Board is confident in the long-term prospects of the business and believes this offer represents an excellent opportunity to create a leading global security company, for shareholders to realise value for their investment at an attractive premium, while also ensuring the future success of G4S for employees, customers and other stakeholders. We are therefore unanimously recommending it to our shareholders.”
And Steve Jones, President and Chief Executive of Allied Universal said: “Our businesses know each other well, we share a similar culture and values and I am excited about what the combination of Allied Universal and G4S can deliver.
“G4S has an excellent service offering, an enviable global customer portfolio and it is led by a highly experienced management team. We have been impressed by the recent transformation of G4S which alongside our successful acquisition track record, underpins our confidence of ensuring a seamless integration of the two businesses. Combined, we will have over 100 years of industry experience and a more extensive global network in terms of people, customers and capabilities. Together, we will be in a stronger position to deliver enhanced value for all stakeholders and address customers’ evolving security needs in an increasingly volatile and fast-changing world.”
The offer price contrasts with the 146 pence per G4S share on September 11 when first the Canadian multi-national GardaWorld made an offer; eventually raised as high as 235 pence. Strictly speaking, Atlas UK Bidco Limited, a newly incorporated entity that is indirectly controlled by Allied Universal, will acquire the entire G4S share capital. Atlas UK Bidco says it has entered into a memorandum of understanding with Allied Universal and the G4S UK Pension Trustee which sets out the parties’ intentions about funding of the G4S UK pension scheme.
Photo by Mark Rowe; G4S cash in transit van, west London.
