Guards in my inbox

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08/04/2011

For a change of pace, there’s been some guard news in my inbox this week. Earlier this week peHUB reported that Wind Point Partners closed a deal with Goldman Sachs Capital Partners to sell its guard company U.S. Security Associates

From the release: “U.S. Security provides security services for over 3,000 clients, with 146 branches across the United States and Puerto Rico. Wind Point acquired U.S. Security Associates (f/k/a Outsource Partners) in 1999 in partnership with CEO Chuck Schneider. Chuck co-founded U.S. Security in 1993 and previously served as CEO of Borg-Warner Security. He will continue to lead U.S. Security Associates and invested in the company alongside Goldman Sachs Capital Partners

U.S. Security Associates is a premier national provider of uniformed contract security services. Our more than 33,000 employees across more than 140 offices serve several thousand clients in a variety of industries across the country."

Then yesterday, I got more information on this deal and about the guard business in general from Robert Perry’s White Paper on the U.S. Security Guard Industry.  Perry reports that U.S. Security Associates is a $900 million company, and this deal is the latest in a busy year of guard company acquisitions. He includes a list of announced guard transactions and says, “the list certainly indicates that the buyers have been very busy in the past 12 months and there does not seem to be any slow down in sight.”

But is the guard market growing? Not recently, according to Perry: “Most industry experts are saying that today’s security guard market, to include only traditional

guarding services, is in the $17—$18 billion range; almost no change since our last report. Therefore, we’ll use $18 billion.”

Perry identifies four developments that present future challenges for guard companies: the new national health care bill; unionization of the guard industry; increase in Federal income, capital gains an inheritance taxes; and, higher unemployment and other taxes.

There are lots more details in this report. To check it out visit http://www.roberthperry.com/