Allied Universal Security to buy G4S for 5.1 billion USD

The boards of directors managing Allied Universal Topco and of G4S have announced that they have reached agreement on the terms of a recommended cash offer, to be made by Atlas UK Bidco Limited, a newly incorporated entity that is indirectly controlled by Allied Universal, to acquire the entire issued and to be issued share capital of G4S. The deal reportedly worth $5.1 billion combines two of the largest security companies in the world, and comes after G4S has spent months rejecting other lower offers made by Canadian company Gardaworld.
The G4S Directors of G4S are unanimously recommending that G4S shareholders should accept the offer, and according to the statement released by the company, they have irrevocably undertaken to do so in respect of their own G4S Shares, which represent approximately 0.21 per cent of the total shareholding.
The combination of Allied Universal and G4S will create a world-leading integrated security business with revenues of approximately US$18 billion, and a workforce of over 750,000 people, a strong international platform and an extensive portfolio of blue-chip clients across the public and private sectors.
Commenting on the Offer, Ashley Almanza, Chief Executive Officer 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.”
Commenting on the Offer, Steve Jones, President and Chief Executive of Allied Universal said: “We are delighted that our offer of 245 pence per share has been recommended by the G4S Board. 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.”