Allied Universal, a portfolio company of Warburg Pincus, Wendel Group, and Partners Group, has agreed to acquire US Security Associates (USSA), a portfolio company of Goldman Sachs Merchant Banking, for approximately $1 billion.
USSA provides unarmed and armed uniformed security services, consulting and investigative services including asset tracing; business intelligence and due diligence; digital forensics; intellectual property protection; litigation support; and security program audits.
USSA was founded in 1955 and is headquartered in Roswell, GA (www.ussecurityassociates.com). Goldman Sachs Merchant Banking acquired USSA in July 2011 from Wind Point Partners.
“USSA has built itself into one of the leaders in the security industry over the years and provides a unique suite of security solutions to a wide array of clients across industry verticals. This transaction aligns with our long-term growth strategy of acquiring scalable businesses with significant potential when combined with the Allied Universal platform,” said Steve Jones, Chief Executive Officer of Allied Universal.
Allied Universal provides a mix of services including traditional manned guards, fire and life safety emergency preparation services, and janitorial services. The company employs more than 150,000 security professionals. Allied Universal has headquarters in Santa Ana, CA and near Philadelphia in Conshohocken, PA (www.aus.com).
When the buy of USSA is closed (expected by the end of the third quarter of 2018), Allied Universal will employ approximately 200,000 security professionals and generate combined pro forma revenues of $7 billion. USSA’s pro forma revenues in 2017 were $1.5 billion and pro forma Adjusted EBITDA was $95 million. Based on the $1 billion purchase price, the valuation multiple is 10.5x Adjusted EBITDA.
Allied Universal was formed in 2016 through the merger of AlliedBarton Security Services (a portfolio company of Wendel Group) and Universal Services of America (a portfolio company of Warburg Pincus and Partners Group). Allied Universal will fund the buy of USSA with a combination of additional indebtedness and up to $200 million of equity from existing shareholders. Wendel Group and Warburg Pincus are expected to each maintain approximately one-third economic ownership of Allied Universal.
Warburg Pincus has more than $45 billion in assets under management and has raised 16 private equity funds since its founding in 1966. In November 2015, the firm reached a final close of Warburg Pincus Private Equity XII LP at the hard cap of $12 billion. Warburg Pincus is headquartered in New York with offices in Amsterdam, Beijing, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai and Singapore (www.warburgpincus.com).
The Wendel Group traces its roots back to 1704 and is an active investor in European and North American-based companies across a range of industries. The firm is controlled by members of the Wendel family and is headquartered in Paris (www.wendelgroup.com).
Financial advisors to Allied Universal for this transaction included Barclays, Citi, Credit Suisse, Deutsche Bank, HSBC, Moelis, Morgan Stanley and Societe Generale. Cleary Gottlieb Steen & Hamilton provided legal counsel to Allied Universal.
Financial advisors to USSA included Goldman Sachs and KeyBank. Fried, Frank, Harris, Shriver & Jacobson provided legal counsel to USSA.
© 2018 Private Equity Professional | July 16, 2018