Caisse de dépôt et placement du Québec (CDPQ) has agreed to acquire a 40% stake in Allied Universal from Warburg Pincus, Wendel, and management, valuing the company at an enterprise value of US $7 billion.
CDPQ has also agreed to provide up to US $400 million of primary capital to support Allied Universal’s growth strategy and acquisition plans.
CDPQ will become the largest shareholder; however Allied Universal will continue to be majority owned by Warburg Pincus, Wendel, and the company’s management team, whose representatives will continue to constitute a majority of the company’s board of directors.
The transaction is expected to close in Q3 2019.
With annual revenues of approximately US $7 billion and more than 210,000 employees at over 38,000 client sites, Santa Ana, California and Conshohocken, Pennsylvania based Allied Universal is the largest security solutions provider in North America.
Allied Universal was formed in August 2016 from the merger of Warburg Pincus owned Universal Services of America and Wendel’s AlliedBarton Security Services.
photo credit: Allied Universal
CDPQ to Become Largest Shareholder in Allied Universal
SANTA ANA AND MONTRÉAL , FEBRUARY 20, 2019
Caisse de dépôt et placement du Québec (“CDPQ”) announced today a major investment in Allied Universal (the “Company”), the leading security services provider in North America, alongside company management and Warburg Pincus and Wendel, its current financial partners. The transaction values Allied Universal at more than US$7 billion.
The investment from CDPQ will support the long-term growth and strategy of the largest provider of integrated manned guarding security services in North America. Part of CDPQ’s investment also consists of up to approximately $400 million of primary capital which will be used by the Company to pursue its growth strategy and execute on its pipeline of attractive M&A opportunities.
With annual revenues of approximately US$7 billion and more than 210,000 employees at over 38,000 client sites, Allied Universal is the largest and fastest growing security solutions provider in North America. The Company offers a mix of comprehensive manned guarding security services and innovative technology solutions, including systems integration and remote monitoring, to a broad and diversified group of customers.
“I am very proud to have one of the world’s leading institutional investors commit to Allied Universal and back our vision for success”, said Steve Jones, Chief Executive Officer of Allied Universal. “Our team has worked hard to build the best security company in the world. We are all excited about the future of Allied Universal as well as our plans for continuing to grow both organically and through strategic acquisitions in both the manned guarding and technology sectors. We look forward to accomplishing great things with CDPQ as our long-term partner.”
“This investment, which represents one of the largest private transactions in business services, enables us to invest in a national leader in facility and security services, a sector that will continue to experience sustained organic growth and industry consolidation,” commented Stephane Etroy, Executive Vice-President and Head of Private Equity at CDPQ. “We look forward to supporting Allied Universal’s talented management team as they continue to grow this world-class business and build on its track record of providing its clients a customized mix of manned guarding and security technology solutions.”
Citigroup Global Markets Inc. acted as financial advisor to CDPQ, and Kirkland & Ellis LLP acted as legal counsel to CDPQ. Barclays and Morgan Stanley & Co. LLC acted as financial advisors to Allied Universal, and Cleary Gottlieb Steen & Hamilton LLP acted as legal counsel to Allied Universal.
The transaction is expected to close in the third quarter of 2019, following customary closing conditions, including regulatory approvals.
ABOUT ALLIED UNIVERSAL
Allied Universal, a leading security and facility services company with over 210,000 employees, provides unparalleled security services and solutions. The enterprise combines people and technology to deliver evolving, tailored solutions that allow our clients to focus on their core business. An unrelenting focus on clients’ success creates partnerships rooted in quality and value, and is supported by experience gained from being in business for over 60 years. Through our people and leading services, systems and solutions…Allied Universal is there for you. For more information, please visit www.aus.com.
ABOUT CAISSE DE DÉPÔT ET PLACEMENT DU QUÉBEC
Caisse de dépôt et placement du Québec (CDPQ) is a long-term institutional investor that manages funds primarily for public and parapublic pension and insurance plans. As at June 30, 2018, it held CA$308.3 billion in net assets. As one of Canada’s leading institutional fund managers, CDPQ invests globally in major financial markets, private equity, infrastructure, real estate and private debt. For more information, visit cdpq.com, follow us on Twitter @LaCDPQ or consult our Facebook or LinkedIn pages.
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