Blackstone has agreed to sell its portfolio company AlliedBarton to Wendel SE for approximately $1.7 billion. The sale of AlliedBarton was initiated by Blackstone in March 2015 and according to reports at that time Blackstone was looking to receive $1.5 billion in enterprise value for the company. Blackstone acquired AlliedBarton in 2008.
AlliedBarton generated revenues of approximately $2.2 billion and recorded an adjusted EBITDA of $148 million for the twelve months ended March 31, 2015. This results in a purchase price multiple of 11.6x. To fund the acquisition, Wendel will make an equity investment of approximately $670 million, for a 96% ownership interest in the company with AlliedBarton’s management team holding the remainder of the equity. The balance of the purchase price will be funded through debt.
AlliedBarton is a provider of security services to more than 3,300 customers, including 200 members of the Fortune 500 and is considered to be the largest provider of security services in the US. Customers of the company are active in commercial real estate, higher education, healthcare, financial services, government services, aerospace and defense, petrochemicals and retail. AlliedBarton was founded in 1957 and has more than 60,000 employees and 120 regional offices. The company is headquartered in the Philadelphia suburb of Conshohocken (www.alliedbarton.com).
“Blackstone’s counsel and invaluable support have been instrumental to the development and growth of our business, which has resulted in a successful investment outcome for all equity holders,” said Bill Whitmore, President and CEO of AlliedBarton. “Blackstone has been a tremendous partner over the last seven years and I appreciate the contributions made by Peter Wallace and the entire Blackstone team.”
Blackstone is one of the world’s largest investment and advisory firms. The firm’s alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-focused funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Blackstone is headquartered in New York (www.blackstone.com).
“It has been a privilege partnering with Bill Whitmore and the exceptional management team at AlliedBarton in supporting their efforts to build the preeminent security services firm in the US. We are very proud of the accomplishments and significant value that has been created under our ownership, during which the company substantially grew revenues, profitability and employment,” said Peter Wallace, Senior Managing Director at Blackstone.
Wendel SE, the buyer of AlliedBarton, is one of Europe’s oldest investment firms and has been supported for over three centuries by the Wendel family, its largest shareholder. The firm is headquartered in Paris (www.wendelgroup.com/en).
Credit Suisse acted as exclusive financial advisor and Simpson Thacher & Bartlett acted as legal advisor to Blackstone.
© 2015 PEPD • Private Equity’s Leading News Magazine • 6-30-15
