Securitas has completed the acquisition of Stanley Security
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.
- Immediate operating margin improvement expected from Stanley Security acquisition.
- Access to over 500,000 clients in the electronic security market.
- 50% of future profit expected to stem from high-margin technology and solutions sales.
- Acquisition financed via a bridge facility, indicating potential short-term financial strain.
- Rights issue in September may lead to shareholder dilution.
STOCKHOLM, July 22, 2022 /PRNewswire/ -- The acquisition of Stanley Security is now completed and is consolidated into Securitas as of July 22, 2022. Securitas will present the strategy of the new Group as well as new financial targets on August 24, 2022.
On December 8, 2021, Securitas announced it had signed an agreement to acquire the Electronic Security Solutions business from Stanley Black & Decker Inc. ("Stanley Security") for a purchase price of MUSD 3 200 on a debt and cash free basis. The acquisition is expected to create compelling sales growth and be immediately operating margin accretive to the Group. We anticipate significant commercial opportunities and innovation potential with over 500 000 existing, as well as new, clients in the attractive BUSD 70 electronic security market. We will create a leading platform to accelerate growth and synergies and expect substantial operating margin improvement over time. All regulatory conditions were approved as communicated on July 14 and the transaction has been completed today.
"This transformational acquisition makes us a strong provider of tech-enabled security solutions and a leading partner to our clients on a global scale. With our combined client proposition and our strong sales structure, we expect to deliver higher, more profitable growth than before. Going forward, approximately 50 percent of our profit contribution will be generated through high-margin technology and solutions sales. We are extremely pleased that the acquisition now is formally completed, and I want to welcome all of Stanley Security's clients and employees into the Securitas Group," says Magnus Ahlqvist, President and CEO of Securitas.
The acquisition is financed by a bridge facility, which Securitas plans to refinance by a mix of long-term debt financing and a rights issue which we expect to launch in September. The rights issue will amount to the SEK equivalent of MUSD 915 as previously communicated.
On August 24 at 2.00 p.m. to approximately 4.00 p.m. (CEST) Securitas will arrange a webcast with a presentation of the strategy of the new Group as well as new financial targets for the Group going forward.
A separate invitation will be sent out closer to the event.
IMPORTANT INFORMATION
This press release and the information herein is not for publication, release or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Japan, India, South Africa, Hong Kong, Singapore or any other state or jurisdiction in which publication, release or distribution would be unlawful or where such action would require additional prospectuses, filings or other measures in addition to those required under Swedish law.
The press release is for informational purposes only and does not constitute an offer to sell or issue, or the solicitation of an offer to buy or acquire, or subscribe for, any of the securities mentioned herein (collectively, the "Securities") or any other financial instruments in Securitas. Any offer in respect of any of the Securities will only be made through the prospectus that Securitas expects to publish in due course. Offers will not be made to, and application forms will not be approved from, subscribers (including shareholders), or persons acting on behalf of subscribers, in any jurisdiction where applications for such subscription would contravene applicable laws or regulations, or would require additional prospectuses, filings, or other measures in addition to those required under Swedish law. Measures in violation of the restrictions may constitute a breach of relevant securities laws.
The securities mentioned in this press release have not been registered and will not be registered under any applicable securities law in the United States, Australia, Canada, Japan, India, South Africa, Hong Kong or Singapore and may, with certain exceptions, not be offered or sold within, or on behalf of a person or for the benefit of a person who is registered in, these countries. The Company has not made an offer to the public in to subscribe for or acquire the securities mentioned in this press release other than in Sweden.
None of the securities referred to herein have been or will be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state or other jurisdiction in the United States, and may not be offered, pledged, sold, delivered or otherwise transferred, directly or indirectly, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with applicable other securities laws. There will not be any public offering of any of the securities in the United States.
In the EEA Member States, with the exception of Sweden, Denmark, Finland and Norway, (each such EEA Member State, a "Relevant State"), this press release and the information contained herein are intended only for and directed to qualified investors as defined in the Prospectus Regulation. The securities mentioned in this press release are not intended to be offered to the public in any Relevant State and are only available to qualified investors except in accordance with exceptions in the Prospectus Regulation. Persons in any Relevant State who are not qualified investors should not take any actions based on this press release, nor rely on it.
In the United Kingdom, this press release is directed only at, and communicated only to, persons who are qualified investors within the meaning of article 2(e) of the Prospectus Regulation (2017/1129) who are (i) persons who fall within the definition of "investment professional" in article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) persons who fall within article 49(2)(a) to (d) of the Order, or (iii) persons to whom it may otherwise be lawfully communicated (all such persons referred to in (i), (ii) and (iii) above together being referred to as "Relevant Persons"). This press release must not be acted on or relied on by persons in the UK who are not Relevant Persons.
This announcement does not constitute an investment recommendation. The price and value of securities and any income from them can go down as well as up and you could lose your entire investment. Past performance is not a guide to future performance. Information in this announcement cannot be relied upon as a guide to future performance.
This press release contains forward-looking statements that reflect Securitas AB (publ)'s current view of future events as well as financial and operational development. Words such as "intend", "assess", "expect", "may", "plan", "estimate" and other expressions involving indications or predictions regarding future development or trends, not based on historical facts, identify forward-looking statements and reflect Securitas AB (publ)'s beliefs and expectations and involve a number of risks, uncertainties and assumptions which could cause actual events and performance to differ materially from any expected future events or performance expressed or implied by the forward-looking statement. The information contained in this press release is subject to change without notice and, except as required by applicable law, Securitas AB (publ) does not assume any responsibility or obligation to update publicly or review any of the forward-looking statements contained in it and nor does it intend to. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. As a result of these risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements as a prediction of actual future events or otherwise.
Further information:
Micaela Sjökvist, Vice President, Investor Relations; +46 76 116 7443, micaela.sjokvist@securitas.com
Media: Helena Andreas, SVP, Communications & People; +46 (0)10 470 30 20; press@securitas.com
ABOUT SECURITAS
Securitas is a leading intelligent security solutions partner. Our guarding, electronic security, fire and safety, and risk management solutions enable more than 150,000 clients to see a different world. We are present in 47 markets and our innovative, data-driven approach makes us a trusted partner to many of the world's best-known companies. Our 345,000 employees live our values of integrity, vigilance and helpfulness, and our purpose is to help make your world a safer place.
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SOURCE Securitas
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