Merger talks continue between Securicor, Group 4 Falck
February 5, 2004
LONDON - Worldwide security companies Securicor and Group 4 Falck confirmed this week that they are in merger talks to create a newly formed global security provider.
Though the merger talks are in the early stages, with discussions between the two sides taking place over the past eight weeks, the transaction would bring together SecuricorÃ¢â‚¬â„¢s security business with Group 4 FalckÃ¢â‚¬â„¢s. The result would be the second-largest security company in the world, with Securitas edging the newly formed company out with $7 billion in annual security sales.
Jack Mallon, managing director of Mallon Associates, characterized the potential transaction as a Ã¢â‚¬Å“global realignment,Ã¢â‚¬Â and expects limited impact on the United States market since the European and Asian market make up much of each companyÃ¢â‚¬â„¢s business today.
In recent years, Group 4 Falck has increased its presence in the United States. In 2002 it bought The Wackenhut Corp., a Palm Beach Gardens, Fla., guard company that provided its entrance into the guard market here. The Danish security company already had a presence through Amag Technology, a manufacturer of access control products based in Torrance, Calif.
Securicor, on the other hand, operates a number of security businesses in the United States, but it is perhaps most well-known for is Atlanta-based guard firm Cognisa, formerly known as Argenbright Security. The company changed its name in 2002 to distance itself from the fallout it experienced after the Sept. 11, 2001 terrorist attacks as the company provided airport security services, such as screening passengers, across the country.
Before the transaction can happen, Group 4 Falck plans to spin-off two of its four businesses, global solutions and rescue and safety services. The remaining businesses, security and services, would combine with SecuricorÃ¢â‚¬â„¢s business, which is estimated to employ 100,000 people and has a stock market value of $1.1 billion.
Group 4 Falck employs 230,000 people worldwide and is valued at $1.8 billion.