Research Update: Allied Universal Upgraded To 'B' On Improved Competitive Positioning, Scale On Acquisition Of G4S; Outlook Stable

On April 6, 2021, North American security solutions provider Allied Universal Topco LLC acquired G4S PLC for about $8.3 billion (9.6x pro forma adjusted EBITDA multiple). The transaction was financed with balance sheet cash, about $1.07 billion of new cash equity, and approximately $6.3 billion of new debt. The acquisition improves Allied's competitive position, scale, and geographic diversification and positions the company as the largest global integrated security provider with pro forma revenue of about $18.36 billion. As a result, we raised our issuer credit rating on the company to 'B' from 'B-'. The outlook is stable. At the same time, we assigned our 'B' issue-level and '3' recovery ratings to the proposed secured credit facilities and secured notes and

...- On April 6, 2021, North American security solutions provider Allied Universal Topco LLC acquired G4S PLC for about $8.3 billion (9.6x pro forma adjusted EBITDA multiple). The transaction was financed with balance sheet cash, about $1.07 billion of new cash equity, and approximately $6.3 billion of new debt. - The acquisition improves Allied's competitive position, scale, and geographic diversification and positions the company as the largest global integrated security provider with pro forma revenue of about $18.36 billion. - As a result, we raised our issuer credit rating on the company to 'B' from 'B-'. The outlook is stable. At the same time, we assigned our 'B' issue-level and '3' recovery ratings to the proposed secured credit facilities and secured notes and our '###+' issue-level and '6' recovery ratings to the proposed unsecured notes. - We also raised our issue-level rating on Allied's existing secured and unsecured debt to 'B' and '###+', respectively, from 'B-' and '###'. -...

Research Update