UK's private security firm G4S Plc (GFS.L, GFSZY.PK), following a strategic business review, has decided to divest its US Government Solutions business.
G4S Government Solutions Inc. provides security, fire protection, facilities management, training and mine clearance services to US Government organisations, including the Departments of Energy, Homeland Security and Defense in addition to international organisations like NATO and the United Nations, both within the U.S. and overseas. G4S Government Solutions' revenues totaled about 400 million pounds in 2012.
G4S hopes that an alternative parent would be able to create or add more value to the business than G4S. As a non-US parent, with restricted access to important commercial data, the company said its ability to manage the business and share best practice is severely limited.
G4S would retain its US commercial security business, that provides a broad range of security services and technology to commercial companies and Government departments at a Federal, State and local level, where high level security clearances are not required. The revenues of this business, combined with G4S' other ongoing US operations were around 1.2 billion pounds in 2012.
Houlihan Lokey was appointed to manage the disposal process and the transaction is likely to complete within the next six months.
| || |
| To receive FREE breaking news email alerts for G4S PLC and others in your portfolio|
by RTT Staff Writer
For comments and feedback: email@example.com