PARIS--(BUSINESS WIRE)--Wendel (MF.FP), a global investment firm, today announced that it has agreed to acquire AlliedBarton Security Services, one of the largest security officer services companies in the United States, from funds managed by Blackstone, one of the world’s leading alternative asset managers, for approximately $1.67 billion or. c. 11.6x FCF1 for the twelve months ended March 31, 2015. As part of the proposed acquisition, Wendel will make an equity investment of approximately $670 million, for a c. 96% ownership in the company, alongside AlliedBarton’s management team. The transaction is expected to close by the end of the third quarter, subject to customary conditions and regulatory approvals.
AlliedBarton is a leader in the U.S. security services market providing physical guarding and related services to a diversified group of more than 3,300 customers in a number of markets. These markets include, for example, commercial real estate, higher education, healthcare, financial services, government services, aerospace and defense, petrochemicals and retail. Some of these clients are very large enterprises – including approximately 200 of the Fortune 500 companies – and others are smaller organizations. Founded in 1957 and based in Conshohocken, Pennsylvania, AlliedBarton has more than 60,000 employees and 120 regional and district offices located throughout the United States. For the twelve months ended March 31, 2015, AlliedBarton generated revenues of approximately $2.18 billion and an adjusted EBITDA of $148 million with a free cash flow conversion rate of greater than 95%2.
The market for outsourced security officer services in the U.S. is estimated to be greater than $20 billion. The industry, and in particular, AlliedBarton, has demonstrated strong growth over a long period of time and proven quite resilient during economic downturns. Over the years, AlliedBarton transformed from a regional participant to an industry leader with a national presence. The Company integrated 12 acquisitions since 1998 and developed a unique go-to-market approach driven by customized, vertical segment expertise.
Taking this investment into account, Wendel has fully achieved all of its 2013-17 strategic objectives and will have invested €2.1bn in equity since 2013.
“AlliedBarton is a world-class franchise with a tremendous reputation for integrity and reliability and a very impressive management team, led by Bill Whitmore.”, said Frédéric Lemoine, Chairman of Wendel’s Executive Board. “The company has an outstanding track record of profitable growth and cash generation. It is well positioned to continue to grow both organically and through acquisitions. This is Wendel’s second investment in North America in less than seven months and represents a significant step in our efforts to diversify geographically, particularly when considering that AlliedBarton’s business is predominantly in the U.S.”
“We are very excited to join Wendel”, added Bill Whitmore, Chairman and CEO of AlliedBarton. “Their long term investment philosophy and successful track record of building world-class companies will help AlliedBarton continue its extraordinary growth and achieve the next level of success. The senior leadership team and I look forward to working with Wendel and building a strong relationship based on our shared values and strategic vision. AlliedBarton will continue to deliver high quality security services tailored to the individual needs of our clients.”
About AlliedBarton Security Services
For more than 50 years, AlliedBarton Security Services has provided superior security officer services to protect people, homes and businesses. AlliedBarton tailors security programs to meet clients’ needs with committed professionals who enhance clients’ brands. The most honored security services provider, AlliedBarton consistently delivers exceptional service which creates a differentiated experience for clients and the people they serve. More than 60,000 employees and 120 offices serve thousands of clients with levels of protection that anticipate needs and build enduring relationships.
For more information, please visit http://www.alliedbarton.com
About Wendel
Wendel is one of Europe's leading listed investment firms. The Group invests internationally, in companies that are leaders in their field, such as Bureau Veritas, Saint-Gobain, Materis Paints, Stahl, IHS and Constantia Flexibles. Wendel plays an active role as industry shareholder in these companies. It implements long-term development strategies, which involve boosting growth and margins of companies so as to enhance their leading market positions. Through Oranje-Nassau Développement, which brings together opportunities for investment in growth, diversification and innovation, Wendel is also a shareholder of exceet in Germany, Mecatherm and Parcours in France, Nippon Oil Pump in Japan, Saham Group in Africa and CSP Technologies in the United States.
Wendel is listed on Eurolist by Euronext Paris.
Standard & Poor’s ratings: Long-term: BBB-, stable outlook – Short-term: A-3 since July 7, 2014.
Wendel is the Founding Sponsor of Centre Pompidou-Metz. In recognition of its long-term patronage of the arts, Wendel received the distinction of “Grand Mécène de la Culture” in 2012.
For more information, please visit http://www.wendelgroup.com/en
| 2015 Calendar | ||||
| H1 2015 earnings / Publication of NAV (pre-market release) | Thursday, September 10, 2015 | |||
| 2015 Investor Day / publication of NAV and trading update (pre-market release) | Thursday, December 3, 2015 |
1 FCF: adjusted EBITDA-CAPEX
2 Free cash flow conversion rate: (EBITDA-CAPEX)/EBITDA