Securitas has agreed with Reliance Security Group to acquire their security services operations in the U.K. with sales of more than US$320 million. Enterprise value is more than $69 million.
With 8,000 employees, Reliance Security Services is one of the largest security services providers in the U.K. The company has a diversified contract portfolio with a stable customer portfolio within guarding, mobile services, aviation security and security specialist services.
With this acquisition, Securitas will have annual sales of more than $483 million and about 12,500 employees.
The acquisition is expected to contribute positively to the earnings per share of Securitas as of 2012. Restructuring costs of in total approximately $8 million are expected in 2010 and 2011 and acquisition-related transaction costs of $2 million are expected in 2010. The acquisition will dilute margins in Security Services Europe in the fourth quarter 2010 and during coming years.
“The acquisition is in line with Securitas strategy for the security services operations in Europe. The acquisition will substantially strengthen our operations in the U.K. both in terms of customer base and national coverage. It will give us a strong platform from which to continue our strategy of refinement and specialization of our services,” said Alf G?ransson, President and CEO, Securitas.