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Security group G4S agreed this week to be bought out by Allied Universal for £3.8 billion, choosing the American company over Canadian firm GardaWorld, ending several months of bidding.
Allied’s offer of 245 pence per share for London-listed G4S is 10 pence higher than GardaWorld’s bid last week, which pegged the British company at £3.7 billion.
On Tuesday (8 December) G4S announced that it had agreed to the terms of a new cash offer from Allied Universal that will pay G4S shareholders 245 pence per share.
The offer, which was made by Atlas UK Bidco Limited (Allied Bidco), a new entity created by Allied Universal to implement the offer, values G4S at £3.8 billion.
The companies will create a combined business that is expected to generate about $18 billion in annual revenues operating in 85 nations.
Ashley Almanza, CEO of G4S, said: “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. 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.”
Steve Jones, president and CEO 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.”
The bidding contest between the US and Canadian firms for G4S began when GardaWorld made its offers for G4S public in September.
Since then, G4S shares had gained about 75 per cent in value at Tuesday’s closing price of 255.8 pence, before the deal was revealed.
According to its statement, Allied Universal intends to maintain a UK headquarters in London to serve as the enlarged group’s headquarters for all international operations outside of North America. The companies added that they do not expect there to be a “significant number of overlapping functions outside of North America”.
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