Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

G4S Acquires ISS

Bloomberg  October 16, 2011

G4S Plc (GFS) agreed to acquire ISS A/S for 1.5 billion pounds ($2.4 billion) to create the world’s biggest integrated security provider and office cleaner for clients such as Citigroup Inc.

G4S plunged as much as 22 percent, the most since it started trading on the London Stock Exchange in 2004, after saying in a statement that it plans a 2 billion-pound rights offer to fund the purchase. G4S is buying ISS from EQT Partners and Goldman Sachs Capital Partners for a total value of 5.2 billion pounds, of which 3.7 billion pounds is assumed debt, Chief Executive Officer Nick Buckles said on a call today.

G4S is playing into a trend for customers to bundle different kinds of office-upkeep and security services into a single contract. With the purchase, the Crawley, England-based company gains access to the 500 billion-pound facilities-management market, where the ability to offer other services alongside security can boost expansion by 1 percent to 2 percent, Buckles said.

“G4S has a good track record on acquisitions and the move to an integrated facilities services offering does have some logic,” Robert Plant, an analyst at JPMorgan Chase & Co. (JPM) with a“neutral” recommendation on the company, said in a note

Please read the entire article here

October 17, 2011 - Posted by | Civilian Contractors, G4S, Government Contractor, Private Security Contractor | , ,

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