BC Partners, alongside Founder, Chairman & CEO Stephan Crétier and others, have reached a definitive agreement to acquire Rhône Group’s equity interest in Garda World Security Corporation in a $5.2 billion recapitalization.
The transaction is expected to close by late 2019.
Following the closing of the transaction, BC Partners will have a 51% common equity interest in GardaWorld while Stephan Crétier, together with select members of management, will increase holding to 49%.
Founded in 1995 by Crétier, Montreal based GardaWorld is the world’s largest privately-owned security services company.
In November 2012, Apax Partners along with Crétier took Garda private in a $1.1 billion deal, consisting of $384 million equity and the assumption of debt. Crétier and other members of management held 30% while Apax held 70% stake.
In 2016, Rhône Capital acquired 45% of GardaWorld from Apax Partners.
In May 2017, Rhône Capital and Crétier acquired all of Apax’s remaining stake in GardaWorld. Crétier, along with certain management stockholders, holds approximately 39%, and Rhône Capital increased its stake to 61% (fully diluted).
Garda would be BC Partners’ second large recap transaction in Canada.
On May 31, 2018, BC Partners’ led consortium including Ontario Teachers’ Pension Plan and CEO Patrick Dovigi, completed a $5.125 billion recap of GFL Environmental acquiring stakes held by HPS Investment Partners, Macquarie Infrastructure Partners III and Hawthorn Equity Partners. GFL Environmental has just filed for an initial public offering (IPO) in Canada and the US, reportedly in a bid of raising US $1.5 billion.
photo credit: Garda
News Release
Group Led by Founder, Chairman & CEO Stephan Crétier and BC Partners to Recapitalize GardaWorld in Transaction Valued at C$5.2 Billion
Transaction marks Canada’s largest private buyout
MONTREAL and NEW YORK, July 23, 2019 /CNW Telbec/ – Alongside Founder, Chairman and CEO Stephan Crétier, funds advised by BC Partners (“BC Partners”), a leading international private investment firm, and others have reached a definitive agreement to acquire Rhône Group’s equity interest in Garda World Security Corporation (“GardaWorld”), the largest privately-owned security and cash services company in the world, in a C$5.2 billion recapitalization. Following the transaction close, BC Partners will have a 51% common equity interest in GardaWorld while Stephan Crétier, together with select members of management, will hold 49%.
Founded in 1995 by CEO Stephan Crétier, GardaWorld is the world’s largest privately-owned security services company. Headquartered in Montreal, the company is regarded as an industry leader and offers a wide range of physical and specialized security solutions, as well as end-to-end cash management. It serves a diverse clientele of private companies, governments, humanitarian organizations and multinationals with its employee base of over 92,000 professionals across North American and EMEA.
“GardaWorld has come a long way since its humble beginnings when I started this company with a C$25,000 second mortgage on my home 25 years ago. Today, our operations take us from our head office in Montreal, Quebec to the oil fields of Iraq; from protecting embassies in Africa to serving major U.S. financial institutions and securing Canadian airports. At this juncture of our evolution and as we enter our next phase of growth, I am truly excited to partner with BC Partners, who is the ideal co-shareholder to fuel our continued growth as we pursue our path to become a true global champion in the security services sector,” stated Stephan Crétier.
“We look forward to partnering with GardaWorld’s founder Stephan Crétier and management team to further grow the company in the attractive security services industry, which we believe offers significant opportunities for consolidation. We admire GardaWorld’s unique entrepreneurial culture and superior operating model, which have contributed to its track record of best-in-class performance over the years. Looking forward, we are confident that our partnership will add significant value as the company continues to expand its reach,” said Paolo Notarnicola, lead deal Partner for BC Partners.
Raymond Svider, Partner and Chairman of BC Partners added: “GardaWorld marks the latest transaction where we partner with an exceptional entrepreneur and team to continue to transform the business and take it to the next phase of growth. This is also the largest private buyout in Canadian history. We are thankful to Stephan Crétier and his team for their trust and are looking forward to a great partnership and an exciting journey together:”
The GardaWorld Board of Directors wishes to thank Rhône Capital for its contributions as a shareholder over the past three years. During Rhône’s involvement since 2016, GardaWorld continued to deliver strong organic growth and added new strategic platforms to its family through the company’s M&A program, while continuing to provide the highest standard of trusted service on which the company has built its differentiated reputation since 1995. Following the close of today’s announced transaction, Rhône Capital will no longer have any equity participation in GardaWorld.
The transaction, which is subject to customary closing conditions, is expected to close by late 2019. Further financial terms of the transaction were not disclosed.
Barclays and TD Securities acted as financial advisors to GardaWorld. Scotiabank acted as financial advisors to BC Partners. Committed financing for the transaction is being provided by JPMorgan Chase Bank, Bank of America, Barclays and TD Securities. Simpson Thacher & Bartlett LLP and Séguin, Racine LLC acted as legal counsel to GardaWorld while Kirkland and Ellis LLP and Osler, Hoskin & Harcourt LLP acted as legal counsel to BC Partners.
About GardaWorld
GardaWorld is the world’s largest privately-owned security services company, offering cash services, physical and specialized security solutions and, with the Crisis24 portal, the dissemination of vetted information related to international security. A partner of choice for private companies, governments, humanitarian organizations, and multinationals with personnel all over the world, GardaWorld employs more than 92,000 highly skilled, dedicated professionals who serve a diverse clientele in North America, Africa, Asia and the Middle East. In the complex world we live in, our reputation is based on the quality of our services, as well as the commitment and integrity of our people. For more information, visit www.garda.com.
About BC Partners
BC Partners is a leading international investment firm with over €22 billion of assets under management in private equity, private credit and real estate. Established in 1986, BC Partners has played an active role in developing the European buy-out market for three decades. Today, BC Partners executives operate across markets as an integrated team through the firm’s offices in North America and Europe.
Since inception, BC Partners Private Equity has completed 110 private equity investments in companies with a total enterprise value of over €135 billion and is currently investing its tenth private equity fund. For more information, please visit www.bcpartners.com.
SOURCE Garda World Security Corporation
For further information:
Media Contacts: BC Partners – Prosek Partners, Pro-BCPartners@prosek.com, 1-212-279-3115; GardaWorld Media Relations, media@garda.com, 1 514-281-2811 x2700