Allied Universal to buy G4S for $5.1B

SANTA ANA, Calif.—Allied Universal announced it has reached an agreement with G4S on a cash buy offer of $5.1 billion, to be made by Atlas UK Bidco Limited (Allied Bidco), a newly incorporated entity that is indirectly controlled by Allied Universal. Allied Bidco has committed financing available to satisfy the full cash consideration payable to G4S Shareholders under the terms of the offer, which is expected to close in the first quarter of 2021.

The combination of Allied Universal and G4S will create an integrated security business with revenues of approximately $18 billion, a strong international platform and an extensive portfolio of blue-chip clients across the public and private sectors.

“We are extremely excited about the prospect of bringing two leading security companies together,” Allied Universal President and CEO Steve Jones told Security Systems News. “Our acquisition of G4S will enable Allied Universal to partner and grow with its Fortune 500 customers on a truly global basis and will be in a stronger position to drive industry standards of professionalism in the security sector around the world.”

Jones noted in the announcement that it helps greatly that the 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.”

He continued, “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 combined companies will employ a global workforce of more than 750,000 people.

"G4S has been transformed into a focused global leader in security services with market-leading solutions and a blue-chip customer base that is served by a dedicated and talented team of over 530,000 employees,” G4S CEO Ashley Almanza commented on the offer. “The combination of G4S and Allied Universal creates the global leader in security with over 750,000 employees, industry leading capabilities and unrivalled market coverage. This unique and compelling combination will offer customers exceptional service and provides employees with an exciting future.”

Chairman of the G4S Board John Connolly added, “Today, G4S is a global leader in security services. Under 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.”