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Wendel buys AlliedBarton Security Services for $1.67 billion

Staff writer |
Wendel, a global investment firm, has agreed to acquire AlliedBarton Security Services, one of the largest security officer services companies in the United States, from funds managed by Blackstone for approximately $1.67 billion.

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This represendt 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 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%.

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.

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