Allied Universal Beats GardaWorld to Win a G4S Auction With a $5.3 Billion Bid

By Mariliana Fotopoulou Monday, February 22, 2021

A G4S security van in London, UK.

American security company Allied Universal offered 245 pence ($34.35) per share for G4S to top the rival offer of 235 pence ($32.95) submitted by Canadian security company GardaWorld. This way, months-long pursuit by GardaWorld has ended.

The Canadian company issued a statement this morning to note that it will not raise its offer of 235 pence, paving the way for Allied Universal to finalize a deal at 245p a share. The US security business also says that it will not raise its offer.

"There can be no better owner for G4S than GardaWorld, but we are disciplined buyers and we will not overpay for a company with systemic ESG issues that continue to come to light," the company’s Chief Executive Officer Stephan Crétier said.

G4S shareholders will receive 245 pence in cash for each share they hold. The entire business deal is worth £3.8 billion ($5.33 billion). The company’s management previously urged shareholders to accept the latest offer from Allied Universal.

Both Allied Universal and GardaWorld were engaged in a head-to-head battle to acquire G4S, forcing Britain’s takeover regulator to step in and give interested parties until February 20 to make their final business offers.

Harsh words had been exchanged between management teams of G4S and GardaWorld, with the latter making a hostile takeover bid in October last year. Chief Executive Crétier moved to make a cash offer worth nearly £3 billion ($3.8 billion) at that time.

“G4S is a deeply troubled business which needs a committed owner-operator team that understands the sector and has a definitive and comprehensive plan,” he said in October.

“Stakeholders can take no confidence in the promises of a senior management team that has been in place for seven years and has not delivered for shareholders, customers, employees or the public.”

G4S has doubled its market value since the beginning of September last year when it emerged that GardaWorld was interested in acquiring the British security business. Last week, G4S stock made an all-time high of 270.9 pence ($38.01) a share before pulling back about 10% today to settle around the agreed takeover price of 245 pence.

Summary

American security business Allied Universal is very likely to become the new owner of British security company G4S after its offer of 245 pence a share was higher than 235 pence a share offered by its Canadian rival GardaWorld.

About the Author


Headshot of Mariliana Fotopoulou

Mariliana has an MSC in Consumer Analytics and Business Strategy. She has a special interest in fast-moving industries and Big Data.

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