G4S sells G4S Utility Services for £52 million28 December 2016
G4S, the leading global integrated security company, announces today that it has completed the sale of G4S Utility Services, its UK multi-utility metering services business, to First Reserve, the majority shareholder in Morrison Utility Services Group, for £52 million paid in cash. Proceeds from the sale will be used for general corporate purposes.
In the year to 31 December 2015, G4S Utility Services generated profit before taxation of £8 million. At 31 December 2015 the business had gross assets of £48 million and net assets of £18 million.
As part of the transaction, senior management in G4S Utility Services will remain with the business at completion.
Commenting on the transaction, G4S Group Chief Executive, Ashley Almanza, said:
“The sale today of the utility business is part of the Group’s portfolio management programme which is greatly improving the Group’s strategic, commercial and operating focus. To date we have closed or concluded binding agreements to sell 32 businesses, with aggregate disposal proceeds of £433 million since the start of the programme in 2013.”
This announcement contains inside information and the person responsible for making this announcement is Peter David, Company Secretary.
Note 1: G4S Utility Services comprises the following companies: G4S Utility and Outsourcing Services (UK) Limited; G4S Assessment Services (UK) Limited; G4S Locks & Alarms (UK) Limited.
G4S is the leading global, integrated security company, specialising in the provision of security services and solutions to customers. Our mission is to create material, sustainable value for our customers and shareholders by being the supply partner of choice in all of our markets.
G4S is quoted on the London Stock Exchange and has a secondary stock exchange listing in Copenhagen. G4S is active in over 110 countries and has 600,000 employees. For more information on G4S, visit www.g4s.com.
About G4S Utility Services
G4S Utility Services, headquartered in Newcastle, employs 2,500 people in data collection for a number of UK utilities, in addition to a range of smart metering services, including the installation and maintenance of smart meters. The business, which makes some 60 million home visits a year, also includes a full suite of data flow systems capable of interfacing with all the major meter manufacturers.
G4S Utility Services also incorporates 16,500 commercial alarm contracts under the ProtectMyProperty.co.uk brand, and inspects over 11,000 hotels and guest accommodation properties within the provision of hotel quality assessment and compliance services, both of which will be included in the sale.
About First Reserve
First Reserve is a leading global private equity and infrastructure investment firm exclusively focused on energy. With over 30 years of industry insight, investment expertise and operational excellence, the Firm has cultivated an enduring network of global relationships and raised approximately USD $31 billion of aggregate capital since inception. First Reserve has completed approximately 600 transactions (including platform investments and add-on acquisitions), creating several notable energy companies throughout the Firm’s history. Its portfolio companies operate on six continents, spanning the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services and infrastructure. Visit www.firstreserve.com for more information.
About Morrison Utility Services Group “MUS”
With history dating back to 1884 MUS serves blue-chip utility companies and electricity, gas, water and telecom providers throughout the UK. MUS’s mission is to be the leading utility service provider by delivering a cost-effective quality service to its clients and continuously maintaining, renewing and upgrading essential UK utility infrastructure and networks.
The company has nearly 4,000 direct employees, with a focus on training and development programs to enhance expertise and dependability. MUS was acquired by First Reserve, a global equity investment firm that specialises in energy and infrastructure investments in September 2016. For more information, please visit: https://www.morrisonus.com/