Lars Norby Johansen, chief executive of Group 4 Falck – the Danish security company specialising in manned security and prisoner escort services – has concluded merger talks with British rival Securicor Security Services. The firms will now join forces in the final quarter of 2004.
The combined group will create a global security operation with a turnover approaching GB pound 3.8 billion and an estimated market value of more than GB pound 1.6 billion.
Johansen had been conducting talks with his counterpart at Securicor – Nick Buckles – for the past 12 weeks, with an official announcement confirming the merger presented to the London Stock Exchange on Tuesday 24 February.
Buckles’ firm has had something of a rocky ride on the financial markets during the last three years, its prospects taking a significant ‘hit’ when American aviation security subsidiary Argenbright Security was sued (the company having been responsible for security screening on two of the fateful flights that hit the World Trade Centre during the terror attacks perpetrated on September 11).
According to a recent report in The Sunday Times’ Business Section, Buckles reassured City mandarins that Securicor now has more than GB pound 1 billion of insurance cover in place. That said, the company has also experienced difficulties with its German operation of late.
The Sunday Times report by John Waples also stated: “For some time, Nick Buckles has told investors he’s been looking for a transformational deal. To help achieve this he has sold-off non-core subsidiaries such as Securicor’s remaining 50% stake in its parcel delivery business to Deutsche Post.”
That particular deal raised GB pound 167 million, returning no less than GB pound 75 million to the company’s shareholders.
Group 4 Falck is the world’s second largest security company – eclipsed only by Securitas – employing over 230,000 staff across 85 countries. An official statement on its web site suggests that the merger with Securicor will be effected by a newly-formed UK company entitled Group 4 Securicor. Following the merger, shareholders in both Group 4 and Securicor will hold shares in the new concern (which is likely to be listed in London and Copenhagen).
Prior to the merger, it’s envisaged that Group 4 Falck will demerge its Rescue and Safety and Global Solutions businesses.
