Security Company AlliedBarton Security Services, a portfolio of Wendel SE (MF: PA) will merge with industry counterpart Universal Services of America. Wendel will receive $387 million in cash in addition to 33 percent shares of the combined company that will be called AlliedUniversal.
AlliedBarton, based in Conschohocken, Pennsylvania, and founded in 1957, provides security guard services to business organizations. Wendel acquired a majority stake in the company in December 2015 for $1.68 billion.
Universal Services, headquartered in Santa Ana, California, also provides security serves. In addition to corporations, Universal Services works with airports and other government facilities. The company is backed by Warburg Pincus and Partners Group.
AlliedUniversal will be led by Universal Services CEO Steve Jones. The company will have more than 140 thousand security officers and about $4.5 billion in combined annual revenue. Alongside Wendel, Warburg and Partners Group will have stakes in AlliedUniversal.
Clearly Gottlieb Steen & Hamilton LLP is representing Warburg Pincus and Universal Services. Skadden Arps Slate Meagher & Flom LLP along with Fried Frank Harris Shriver & Jacobson LLP are advising Wendel and AlliedBarton.
In another PE security deal, Apollo Global Management LLC (NYSE: APO) said earlier in 2016 that it will buy home security company ADT Corp. (NYSE: ADT). In 2015, Hellman & Friedman announced plans to back security systems provider Securitas Direct Verisure Group.