Blackstone to pay up to $750 million for security company

NEW YORK Tue Jul 29, 2008 12:40pm BST

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NEW YORK (Reuters) - Private equity firm Blackstone Group LP (BX.N) will pay up to $750 million for security personnel company AlliedBarton Security Services, according to a regulatory filing on Tuesday.

The purchase price for AlliedBarton includes a maximum potential earn-out payment of $50 million, based on the company achieving certain profit targets for 2009, AlliedBarton said in a U.S. Securities and Exchange Commission filing.

The agreement can be terminated under certain circumstances, including if the merger does not occur by October 10, it said. But the companies expect the acquisition to close in August.

The deal, which was announced last week, while not comparable to the mega-billion-dollar buyouts of a year ago, was noteworthy amid a dearth of private equity buyouts.

The credit crunch closed off access to financing for large buyouts and only deals of a few billion are being struck.

Blackstone earlier in July struck a deal with NBC Universal and Bain Capital to buy The Weather Channel from Landmark Communications. Terms of that deal were not disclosed, but sources familiar with the transaction said at the time the price tag was just under $3.5 billion.

(Reporting by Paritosh Bansal, editing by Maureen Bavdek)

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