Securitas to acquire Reliance Security Services in the United Kingdom
Securitas has agreed with Reliance Security Group to acquire their security services operations in the United Kingdom with a total sales of approximately MSEK 2,160 (MGBP 200). Enterprise value is estimated to MSEK 464 (MGBP 43).
With 8,000 employees, Reliance Security Services is one of the leading security services providers in the United Kingdom. The company has a well diversified contract portfolio with a stable customer portfolio within guarding, mobile services, aviation security and security specialist services.
With this acquisition, Securitas will become among the largest security services companies in the United Kingdom, with annual sales of approximately MSEK 3,240 (MGBP 300) 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 MSEK 54 (MGBP 5) are expected in 2010 and 2011 and acquisition related transaction costs of MSEK 14 (MGBP 1,3) 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, aiming to be among the top two largest security services companies in the markets where we operate. The acquisition will substantially strengthen our operations in the United Kingdom 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,” says Alf Göransson, Securitas President and CEO.
The acquisition is subject to approval from the European Commission.