SECURITAS A B UNSP/ADR - SCTBY STOCK NEWS

Securitas has announced the completion of a rights issue of shares, resulting in significant changes to its share structure as of October 31, 2022. The total number of shares increased from 365,058,897 to 573,392,552, comprising 26,938,371 class A shares and 546,454,181 class B shares. This expansion led to a total vote increase from 519,342,297 to 815,837,891 votes. The issuance included 208,333,655 new shares, with 9,795,771 class A shares and 198,537,884 class B shares added. All new securities remain unregistered under U.S. law.

Securitas announced its trading update for the period July 1 - August 31, 2022, reporting total sales of MSEK 22,233, up from MSEK 17,593 in 2021. Organic sales growth stood at 6%. Notably, technology and solutions sales increased to MSEK 6,595, accounting for 30% of total sales. Operating income before amortization reached MSEK 1,437, a 27% increase, resulting in an operating margin of 6.5% compared to 5.9% in the previous year. The acquisition of STANLEY Security positively impacted sales and margins.

Securitas announced new financial targets following the acquisition of STANLEY Security, completed on July 22, 2022. The targets include annual average sales growth of 8-10% for technology and solutions, an 8% Group operating margin by 2025, and a net debt to EBITDA ratio below 3.0x. The previous earnings per share growth target has been replaced. STANLEY Security reported adjusted sales of MUSD 805 for the first half of 2022, with a 3% organic growth rate. Profitability is expected to improve due to implemented pricing and efficiency measures.

Securitas will host an online Investor Update on August 24, 2022, from 2:00 p.m. CEST to 4:00 p.m. CEST, featuring key executives including President and CEO Magnus Ahlqvist and CFO Andreas Lindback. The session will cover the company's strategy and new financial targets following the acquisition of Stanley Security. Participants can submit questions during the event, which will also include a Q&A session.

Stanley Black & Decker (NYSE: SWK) has completed the sale of its Security assets to Securitas AB for $3.2 billion in cash. This divestiture, announced on December 8, 2021, will focus the company on its core businesses, including Tools and Outdoor and Industrial sectors. The sale is projected to reduce debt and fund a $2.3 billion share repurchase. In 2021, the Security division generated approximately $1.6 billion in revenue with a low double-digit adjusted EBITDA margin, highlighting the strategic transformation of the business.

Securitas has successfully completed its acquisition of Stanley Security for MUSD 3,200 as of July 22, 2022. This acquisition aims to enhance Securitas's position in the electronic security market worth BUSD 70, with expectations of immediate operating margin improvement and significant sales growth. The integration is set to boost Securitas's profitability, with around 50% of profit coming from high-margin technology solutions. Financing will involve a bridge facility, with plans for a SEK equivalent rights issue of MUSD 915 in September to refinance.

Securitas AB will release its Interim Report for January-June 2022 on July 28, 2022, at approximately 1.00 p.m. (CEST). The report will be disseminated through a press release by Cision and will be accessible on Securitas' website immediately after release.

Following the report, presentation slides will be available at 2.00 p.m. (CEST). A telephone conference featuring Securitas President and CEO Magnus Ahlqvist and CFO Andreas Lindback is scheduled for 2.30 p.m. (CEST).

Securitas announced it has received regulatory approvals for the acquisition of Stanley Security, initially disclosed on December 8, 2021. The acquisition is set to be completed around July 22, 2022. This strategic move reflects Securitas's commitment to expanding its security services portfolio and enhancing its market position.