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G4S makes ISS acquisition18th of October 2011
ISS, the Denmark-based global building services provider, has been acquired by security solutions group G4S in a deal worth almost six billion euros.
ISS is currently owned by FS Invest, which is indirectly owned by funds advised by EQT and GS Capital Partners. FS Invest will receive half of the consideration in cash and half in new shares in the enlarged G4S group. Shares in the enlarged G4S will be traded on the stock exchanges in London and Copenhagen.
This move creates the world's largest integrated security and facilities services group, with one than one million employees in over 130 countries and combined revenues of 18.3 billion euros in 2010.
Nick Buckles, ceo of G4S commented on the acquisition: "Since G4S was created in 2004, we have grown our business significantly and have expanded our service offering beyond our traditional security heritage into much broader areas of facilities services and outsourcing to meet growing customer needs. We believe this acquisition will transform our business, significantly accelerate the delivery of our solutions strategy and create substantial value for shareholders.
"G4S and ISS have very similar cultures and strategic ambitions as well as a strong, shared vision for providing service excellence to customers across the security and facilities services spectrum. The acquisition will also provide significant opportunities for staff at all levels to develop and broaden their skills into complementary areas, as part of a team of more than one million G4S employees."
ISS' group ceo Jeff Gravenhorst added: ""Since ISS was taken private we have successfully developed and implemented our strategy and transformed the company to a global leader in Facility Services. We built the delivery platform both through acquisitive and organic growth. Since the beginning of 2005 the average organic growth has been four per cent per annum and we are today reporting seven per cent organic growth for the third quarter of 2011. Together the two companies will create an even stronger platform for the future."
The combined group will be headed by G4S' CEO and CFO. On completion Jeff Gravenhorst will join the G4S board of directors and will head up the combined European operations as chief operating officer and Regional ceo Europe.