UK security firm G4S strengthens Brazilian position with Vanguarda deal

UK security solutions group G4S Plc (LON:GFS) said on Tuesday its Brazilian unit SSE DO Brasil Ltda had taken over local peer Vanguarda Seguranca e Vigilancia Ltda from its founders and certain directors.

By acquiring this firm, G4S sticks to its strategy to focus on markets and sectors where security and safety are important considerations, it said. The company noted that its operations in developing markets account for about 31% of its total revenues and added it aims to begin recording 50% of the group total from such markets by 2019.

Sao Paulo-based Vanguarda offers security personnel and systems along with monitoring services and mobile patrols to the banking, transportation, commercial buildings, education, health and public services sectors. The company was founded in 1975 and currently has gross assets of GBP29m (USD47m/EUR36m).

Its acquisition comes after G4S’ takeover of Brazilian unarmed security and facilities services provider Interativa Service Ltda in December 2011, also from its founders and other directors. This firm has gross assets of GBP18m and serves the education, transportation, financial institutions, healthcare, public services and other sectors in the country.

G4S did not reveal the exact sum it paid for any of the two deals but said the combined consideration is in line with the group’s normal multiple of eight to ten times the target’s current year EBITDA. The two Brazilian companies’ combined revenue amounts to around GBP165m, which makes the UK party leader in both the security and facilities management markets in Brazil, it added.