Group Led by Founder, Chairman, President and CEO Stephan Crétier and HPS Investment Partners to Recapitalize GardaWorld in Transaction Valued at C$13.5 Billion Français
- Transaction marks largest private buyout in Canadian history
- Stephan Crétier & Senior Management to own approximately 70% of GardaWorld
- HPS Investment Partners to lead a group of minority investors
- BC Partners to remain a minority investor, supporting future growth
MONTREAL and NEW YORK, Oct. 28, 2024 /CNW/ - Alongside Founder, Chairman, President and CEO Stephan Crétier, funds advised by HPS Investment Partners ("HPS"), a leading global investment firm with approximately $147 billion of assets under management, together with Oak Hill Advisors ("OHA"), One Investment Management ("OneIM") and others, have reached a definitive agreement to acquire BC Partners' majority equity interest in Garda World Security Corporation ("GardaWorld"), an entrepreneurial-driven corporation that builds global champions in security services, AI-enabled security technologies, integrated risk management and cash automation solutions, in a transaction valuing GardaWorld at C$13.5 billion. Following the close of the transaction, Stephan Crétier, together with select members of Management, will hold approximately 70% of GardaWorld and HPS, which is leading a group of sophisticated minority investors, will hold the remaining equity interest. BC Partners will also continue to hold a minority stake.
Founded in 1995, GardaWorld established itself as a global leader in the security industry by building independent, robust operating businesses. These businesses are designed to deliver strong financial profiles, offer large runways for growth and drive innovation and evolution within the industry.
GardaWorld Security – Global provider of security and protection for people, places and assets, with a strong legacy as the provider of choice for prominent companies and governments across the world. GardaWorld Security delivers operational excellence and strives to continuously raise industry standards around service delivery and people management. The business maintains a market leadership position with a long runway of profitable growth and potential to accelerate growth in market share, particularly in the U.S.
Crisis24 - A global, AI-enhanced platform for travel risk management, mass notifications, critical event management, crisis-security consulting and personal protection solutions, including a leading global medical concierge practice, Crisis24 allows prominent organizations, disruptive brands and influential people to operate with confidence in an uncertain world. With a uniquely integrated and scalable platform, Crisis24 has an unrivaled financial profile that allows for strong investment in R&D, technology and innovation.
ECAMSECURE – The integration of advanced AI technology and expert human resources serves as the foundation for uncompromising remote and virtual surveillance. ECAMSECURE simplifies the process of mastering complex security challenges through a comprehensive approach – creating solutions that leverage machine learning, hardware and human supervision to prevent and deter rather than react and recover.
Sesami - A business intelligence platform that includes software, devices and managed services, Sesami helps the leading financial institutions and consumer businesses address the rising costs of cash management. With 390,000 intelligent devices installed globally, Sesami sets the standard in intelligent cash management services with 9 of the top 10 world retailers, 10 of the 10 largest North American banks and 3 of the 5 largest European banks trusting Sesami. Tapping into an underpenetrated market-with decades of growth ahead of it, Sesami has a highly recurring and low capex subscription model which naturally increases margins and cashflow conversion over time.
"In an increasingly complex world, I have discovered that prominent organizations aspire to partner with a vetted entrepreneurial success story. GardaWorld is more than one entrepreneur. It is a group of truly aligned like-minded leaders committed to doing what is best for clients, employees and stakeholders. I am humbled by the professionalism and dedication of my international group of colleagues and the unique DNA we have developed. This is what I call a winning team. We have come a long way since our modest beginnings when I started this company with a C$25,000-second mortgage on my home almost 30 years ago," said Stephan Crétier. "I thank BC Partners for their partnership and welcome HPS' expanded investment along with our group of minority investors to GardaWorld as we continue our winning journey. We are honored that such well-regarded, sophisticated global investors recognize our value as a performance-driven team by investing in our company."
"GardaWorld has consistently generated compelling results as it executes on its commitment to delivering trusted and innovative security solutions, and we believe that its ability to evolve with the rapidly changing security needs of the world's leading companies positions it well for continued success. We are excited to expand our longstanding partnership with the team as they continue to build on GardaWorld's strong momentum and further accelerate its growth trajectory," said Scot French, Governing Partner at HPS.
GardaWorld's Board of Directors thanks BC Partners for their contribution as a shareholder over the past five years. Since partnering with GardaWorld in 2019, the company has continued to deliver strong organic growth, doubling profitability to over C$1.0 billion in operating profit. This performance has contributed to an annual return on investment (IRR) of 30% since going private in 2012.
Paolo Notarnicola, Partner and Co-Head of Services at BC Partners said: "Our partnership with GardaWorld is an excellent example of what we would consider a definitive 'BC deal', partnering with an impressive entrepreneur to help transform and grow a high-potential business in a defensive growth sector. Since partnering with GardaWorld in 2019, we have seen the company go from strength to strength, with operating profit more than doubling to over $1 billion. In addition, we have worked with management to create four global champions under one roof, with market leaderships in security services, AI-enabled security technologies, integrated risk management and cash automation solutions. We are pleased with today's announcement which enables a visionary founder in Stephan to take control of the company, and we remain fully committed to the company's future success as a minority investor."
The transaction, which is subject to customary closing conditions, is expected to close by February 28, 2025. The transaction will be leverage neutral with respect to GardaWorld and will not involve any financing at the level of GardaWorld or its subsidiaries. Further financial terms of the transaction were not disclosed.
Simpson Thacher & Bartlett LLP and Langlois Lawyers LLP acted as legal counsel to GardaWorld, Stephan Crétier and the senior management of GardaWorld. Stikeman Elliott LLP and Latham & Watkins LLP acted as legal counsel to HPS and Kirkland Ellis LLP acted as legal counsel to BC Partners.
About GardaWorld
GardaWorld is an entrepreneurial-driven corporation that builds global champions in security services, AI-enabled security technologies, integrated risk management and cash automation solutions, employing more than 132,000 highly skilled and dedicated professionals across the globe. Driven by a relentless entrepreneurial culture and core values of integrity, vigilance, trust and respect, GardaWorld's global champions offer sophisticated, tailored security and technology solutions through high-touch partnerships and consistently superior service delivery. With a deep understanding that security is critical to the organizational resilience of business operations and the safety of communities, GardaWorld is committed to impeccable governance, professional care and the well-being of everyone. Thanks to a well-earned reputation, GardaWorld businesses are long-standing security partners of choice to some of the most prominent brands, influential individuals, Fortune 500 corporations and governments. For more information, visit gardaworld.com.
About HPS Investment Partners
HPS Investment Partners is a leading global investment firm that seeks to provide creative capital solutions and generate attractive risk-adjusted returns for our clients. We manage various strategies across the capital structure, including privately negotiated senior debt; privately negotiated junior capital solutions in debt, preferred and equity formats; liquid credit including syndicated leveraged loans, collateralized loan obligations and high yield bonds; asset-based finance and real estate. The scale and breadth of our platform offers the flexibility to invest in companies large and small, through standard or customized solutions. At our core, we share a common thread of intellectual rigor and discipline that enables us to create value for our clients, who have entrusted us with approximately $147 billion of assets under management as of June 2024. For more information, please visit hpspartners.com.
About BC Partners
BC Partners is a leading investment firm with over €40 billion in assets under management across private equity, private debt, and real estate strategies. Established in 1986, BC Partners has played an active role for over three decades in developing the European buy-out market. Today, BC Partners' integrated transatlantic investment teams work from offices in Europe and North America and aligned across our four core sectors: Healthcare, TMT, Business Services & Industrials, and Consumer. Since its foundation, BC Partners has completed over 120 private equity investments in companies with a total enterprise value of over €160 billion and is currently investing its eleventh private equity buyout fund. For further information, please visit bcpartners.com.
SOURCE Garda World Security Corporation
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