G4S agrees to Allied Universal sale in £3.8bn deal
Security group G4S has agreed to sell its business to US-based Allied Universal, in a deal that will value the company at £3.8bn.
Under the terms of the offer G4S shareholders will be entitled to receive 245 pence in cash for each G4S share.
The G4S directors consider the deal fair, and intend to unanimously recommend shareholders accept the offer.
G4S chief executive office Ashley Almanza 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.”
The deal will incorporate a new company, Allied Bidco, that will be indirectly controlled by Allied Universal. The combination of Allied Universal and G4S will create a security business with revenues of approximately $18bn.
A loss for Gardaworld
The news follows months of offers made by Canadian firm Gardaworld for G4S.
Less than a week ago Gardaworld made another attempt to buy G4S, making an offer that valued the security business at £3.7bn.
The Canadian firm, which is significantly smaller than G4S, has raised the price of its bid four times since first approaching shareholders about a potential buy in the summer.
Throughout, the G4S board has remained adamant that Gardaworld’s offers have “significantly undervalued” the firm, which provides services such as prison management.
The dogged pursuit has at times descended into acrimony, with both sides seeking to convince shareholders of the weaknesses of the other.
Recently Gardaworld chief executive Stephen Crétier said: “[G4S] Shareholders have a simple choice: remain invested in a company which has consistently failed them and the wider community for so many years, or realise their investment in cash, at a significant and highly attractive premium.”
Gardaworld even hit out at Allied Universal last month, after it revealed to also be in talks with G4S.
“Unlike other real or imagined bidders, our financing is agreed, our offer is a matter of public record and our intent is serious,” Crétier said in a statement.
Gardaworld declined to comment.