PARIS (Reuters) - Allied Universal, a U.S company handling security and facility services, has agreed to buy rival company U.S Security Associates (USSA) for around $1 billion.
The acquisition was announced by French investment company Wendel (MWDP.PA), which has a stake in Allied Universal.
Allied Universal intends to fund the takeover via new debt and up to $200 million of equity from existing shareholders, including up to $80 million from Wendel, increasing Wendel’s total investment in Allied Universal to $380 million.
Wendel and private equity firm Warburg Pincus [WP.UL] are expected to each maintain approximately one-third economic ownership in Allied Universal.
The takeover of U.S. Security Associates is also expected to generate around $55 million annual synergies over the next year.
“As one of the two principal shareholders of Allied Universal, Wendel is supporting the company’s continued growth as the industry continues to evolve. This is consistent with our original investment thesis and we think will further enhance the company’s leadership position,” said Wendel North America chief executive David Darmon.
Reporting by Sudip Kar-Gupta; Editing by Dominique Vidalon