Atlas Ontario LP (d/b/a Allied Universal)

Overview Key strengths Key risks Global market leader in security services, generating about $19 billion in annual revenues. Tight U.S. labor market pressures profitability and cash flow. Recession-resilient business with a track record of positive organic revenue growth. Highly leveraged capital structure with floating-rate debt burdens cash generation. Diverse end markets and limited customer concentration. We view the global security services industry as a recession-resilient business because deteriorating macroeconomic conditions often necessitate greater need for safety services. Its April 2021 acquisition of G4S established Allied as the global leader in the industry and enabled its ability to service large multinational customers that are looking for a single integrated security provider, which we believe will continue to benefit its market share.

...We expect Atlas Ontario LP (doing business as Allied Universal) will expand its revenue in 2023 despite the uncertain macroeconomic environment. We view the global security services industry as a recession-resilient business because deteriorating macroeconomic conditions often necessitate greater need for safety services. Its April 2021 acquisition of G4S established Allied as the global leader in the industry and enabled its ability to service large multinational customers that are looking for a single integrated security provider, which we believe will continue to benefit its market share. We expect Allied will continue growing its business through...

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