G4S Completes Acquisition of ArmorGroup International plc07 May 2008
Acquisition Add New Capabilities In Line With Strategy For Enhanced Growth & Development
G4S plc, the world's leading international security solutions group, is pleased to announce that it has today completed its £43.6 million acquisition of ArmorGroup International plc.
ArmorGroup is a leading provider of defensive and protective security services to national governments, multinational corporations and international peace and security agencies operating in hazardous environments. Headquartered in London, it has approximately 8,500 employees and 38 offices in 27 countries. ArmorGroup provides a wide range of capabilities: protective security; risk management and consultancy; security training; weapons reduction and mine action; and development and reconstruction support services.
ArmorGroup is highly complementary to G4S's existing operations and G4S believes that there is compelling financial and strategic logic in a combination of the respective activities. The acquisition is an important step in the delivery of the G4S’s recently announced strategy for accelerated growth and development based around a greater focus on long term outsourced contracts. The implementation of this strategy will see the Group acquire expertise in a number of key areas, with the acquisition of ArmorGroup fitting the strategy as follows:
ArmorGroup’s operations further expand the Group's exposure to developing markets, where it is already market leader, and provide an opportunity to share best practice across a highly specialised international workforce in these high growth, high margin markets;
The acquisition will enable G4S to widen and deepen its customer relationships, particularly with governments and their intermediaries around the world, where ArmorGroup will give exposure to additional areas of government and enhance the Group's extensive existing contact base across key government departments;
ArmorGroup will further expand G4S's unrivalled geographic footprint. G4S already has operations in over 110 countries but the acquisition adds new markets including Sudan; Afghanistan; Algeria; and Rwanda. The acquisition also enables the sharing of best practice and the capture of synergies in administrative and infrastructure costs in the 19 markets where G4S and ArmorGroup each have existing operations; and
ArmorGroup has considerable expertise in key niche service areas such as mine clearance and disposal, risk management, kidnap for ransom and extortion services and training services for the military, law enforcement and government agencies. G4S believes there are significant opportunities to develop these specialist services further and sell them to the Group's international customer base.
Nick Buckles, Chief Executive Officer of G4S, said:
“ArmorGroup is highly complementary to our existing operations and we believe that the acquisition is an important and logical step in delivering our strategy for accelerated growth and development. ArmorGroup's experience in providing protective security and other related services, its international presence and strong customer relationships means that it is a natural fit with our existing business. We are excited about the enhanced growth prospects that will flow from the combination of the two businesses and will now concentrate on integrating ArmorGroup into the Group.”