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Oslo, Norway
Chicago, New York and Boca Raton, Fl
Sector Alarm acquires G4S Finland
ADT Corp acquired for $7 billion
Sector Alarm
is in the process of
acquiring another company in
the Finnish market G4S. G4S
is one of Finland's biggest security
companies, with around 1,800
employees and revenues of 70 mil-
lion euros. This is Sector Alarm's
second company acquisition in
Finland.
At the beginning of the year
Sector Alarm took its first step
into the Finnish market with the
acquisition of Turvatiimi, Finland's
fourth biggest provider of security
services with more than 1,000
employees and revenues of 35 mil-
lion euros.
Our two acquisitions in
Finland have come in quick
succession, and this really is an
indication of our ambition to
continue to grow in the Nordic
region and in due course in the
rest of Europe. Two years ago
we acquired G4S in Sweden,
which made us one of the leading
operators in the Swedish market.
We now have the same ambition
to create an equivalent position in
the Finnish market," says Jörgen
Dahl, CEO at Sector Alarm.
Sector Alarm's strategy is to
grow both organically and through
acquisitions. Over the last four
years they have acquired nine
companies, eight of them based
in the Nordic region. There is
a strong desire and intention at
Sector Alarm to play an active role
in the consolidation of the Nordic
security market. Each acquisition
contributes to the creation of a
solid platform for future synergies
in each country.
It is expected that the formal
takeover of G4S will take place at
the beginning of April following
the approval by the Finnish Com-
petition Authority.
The Sector Alarm Group was
founded in 1995 and has its head
office in Oslo. Sector Alarm is the
second biggest operator in the
field of private homes and small
businesses in Europe, has leading
positions in Norway, Sweden and
Finland, and is the market leader
in Ireland. Before the acquisition
in Finland, Sector Alarm had
around 420,000 clients.
ADT Corporation,
has entered
into a definitive agreement to be
acquired totally for $7 billion
($42 per share) by an affiliate of
certain funds managed by affiliates
of Apollo Global Management,
LLC and co-investors and merged
with a subsidiary of Prime Security
Services Borrower, LLC (with
its subsidiaries, "Protection 1"
acquired by Apollo in 2015), and
the combined total of the merger
is said to be valued at $15 billion.
ADT Corporation is a leading
provider of monitored security,
interactive home and business au-
tomation and related monitoring
services. Prime Security Services
Borrower, LLC (with its subsi-
diaries, "Protection 1") is a full-
service business and home security
company in the United States, also
owned by the Apollo Funds.
The purchase price $42.00
per share in cash represents a
premium of approximately 56%
over ADT's closing share price
on February 12, 2016 and, when
combined with Protection 1,
represents an aggregate transac-
tion value of approximately $15
billion. The headquarters of the
combined company will remain
in Boca Raton, Florida, and the
combined company will operate
primarily under the ADT brand.
"This transaction represents
a highly attractive premium for
ADT's shareholders," said Naren
Gursahaney, President and CEO
of ADT. "We're proud to have
strengthened the quality of our
customer base, improved service
and retention, and extended our
leadership in innovative solutions
such as our ADT Pulse platform
and our new Security-as-a-Service
offering, ADT Canopy. By combi-
ning Protection 1 with ADT, we
will be better positioned to expand
the breadth and depth of the
services we offer to our customers
throughout the United States and
Canada."
"The combined company
will be a market leader with a
powerful brand and scale resulting
in an enhanced overall customer
experience," said Timothy J. Whall,
President and CEO of Protection
1, who will be the CEO of the
combined business following the
closing of the transaction. "In ad-
dition, Protection 1's robust com-
mercial presence will speed ADT's
expansion into the commercial
sector supported by increasing
commercial sales and technical
skills across a well matched natio-
nal footprint."
"We are tremendously excited
by this unique opportunity to
combine two premier businesses,"
said Marc Becker, Senior Partner at
Apollo. "This transaction provides
the opportunity to dramatically
enhance our position in the large,
fragmented and growing resi-
dential and business interactive
electronic monitoring industry.
Pro forma for the transaction,
the newly created company will
generate a combined $318 million
in recurring monthly revenue and
total annual revenue in excess of
$4.2 billion, placing the businesses
in a strong position to drive inno-
vation and to capitalize on growth
opportunities in the future."
The Board of Directors of ADT
unanimously approved the trans-
action. The acquisition of ADT is
expected to be completed by June
2016. The transaction is subject
to the conclusion of the applicable
antitrust waiting periods in the
United States and Canada, ADT
stockholder approval and other
customary closing conditions.
The merger agreement includes
a "go-shop" period, during which
ADT and its Board of Directors
may actively solicit, receive,
evaluate and potentially enter
into negotiations with parties that
offer alternative proposals during
a 40-day period following the ex-
ecution date of the definitive agre-
ement. There can be no assurance
that this process will result in a
superior proposal. ADT does not
intend to disclose developments
about this process unless and until
its Board has made a decision with
respect to any potential superior
proposal.
Stockholm, Sweden
Assa Abloy acquires US door company
Assa Abloy
has acquired Light-
house, a sectional door and dock-
ing distributor in North Carolina,
South Carolina, and Tennessee,
USA.
"I am very pleased that
Lighthouse is joining the Assa
Abloy Group. I welcome this
addition that further reinforces
the Assa Abloy Group's leadership
in entrance automation, where
our sales have grown from SEK 3
billion in 2008 to SEK 18 billion
in 2015", says Johan Molin, Presi-
dent and CEO of Assa Abloy.
"Lighthouse is a strategic
step for us in the USA and we
welcome the entire team to Assa
Abloy Entrance Systems", says
Juan Vargues, Executive Vice Pre-
sident of Assa Abloy and Head of
Division Entrance Systems.
Lighthouse was established in
1994 and has some 150 employ-
ees. The company is headquarte-
red in Charlotte, North Carolina.
Sales for 2016 are expected to
reach USD 41 million (approx.
SEK 350 million) with a good
EBIT margin. The acquisition
will be accretive to EPS from
start.
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2016-04-12 15:04