Securitas acquires the Securis Group in Belgium
Monday, October 04, 1999
Securitas has reached an agreement with AviaPartner NV in Belgium, a leading international supplier of airport services, and with Belgacom Security Holding NV/SA ("Belgacom"), part of the Belgian telecom, of an acquisition of 80 percent and 20 percent respectively of the shares in Securis. The acquisition price amounts in total to MSEK 270 and is paid in cash. The acquisition will be consolidated in the Securitas Group as of October 1, 1999 and is expected to affect the earnings positively from year 2000. Through the acquisition Securitas is established on the Belgian security market and confirms its position as leading supplier of airport security in Europe.
The Belgian security market
The Belgian security market is estimated to be worth MSEK 3,500. The main actors on the market are Group 4 with approximately 45 percent of the market, Securis has 23 percent, GMIC with 18 percent and Baron Security with 6 percent. In total, approximately 100 companies are active on the market.
Securis started its operations in 1985 and delivers mainly guarding services - Securis represents 28 percent of the Belgian guarding market. Static guarding and beat patrolling together amount to 70 percent of sales with the emphasis on the areas Brussels and Antwerp. Securis also runs airport guarding in Brussels, including area patrolling, passenger and luggage checking, which amounts to 30 percent of sales. This part of the business is conducted under the name Securair.
Securis has currently an operating margin of approximately 4 percent.
The President of Securis, Marc Pissens, who has been in charge of AviaPartner's safety division since 1988, will continue as President and thus becomes Country Manager in Belgium. Mr. Pissens will also be responsible for the Group's further expansion in Benelux and development of airport security within the Securitas Group.
The acquisition means that sales of the Securitas Group will increase with MSEK 780 on an annual basis, which is equivalent to an increase of 3 percent. The Group's operating margin will initially be marginally negatively influenced, since Securis at the moment has a lower operating margin than the rest of the Group. The acquisition price amounts to MSEK 270, which will give rise to goodwill of MSEK 220.
With a continued specialization and refinement of Securis' services in accordance with the Securitas Model, the aim is to increase organic growth and improve profitability. There is, e.g. great opportunities to increase the guarding volume on smaller and medium sized customers.
The operations in France and Germany will be integrated into Securitas' existing operations in these countries.
The acquisition is expected to influence the Group's result before taxes positively from year 2000. The free cash flow will be positively influenced by the acquisition.
The Group's operating capital employed expressed in percent of sales and the Group's net debt is only marginally influenced by the acquisition.
Securitas' vice President and COO, Amund Skarholt, comments the acquisition:
"With the acquisition of Securis we take a big step into a new country and establish ourselves on the Belgian security market and create a new platform for further expansion in Benelux. Securis has long experience in delivering specialized security services to airport customers, which will be of great use for the Securitas Group. As the leading supplier of airport security in Europe, Securitas will, with the acquisition of Securis, further develop and improve its services within this area."