Private equity firms Bain Capital and Hellman & Friedman have agreed to buy Swedish alarm company Securitas Direct from Swedish buyout firm EQT, Reuters reported. The deal reportedly values the business at about 20 billion Swedish Kronor ($3.1 billion). Bain and Hellman & Friedman beat out a rival consortium of Stanley Black & Decker and Carlyle Group in the deal. Terms of the acquisition were not released.
(Reuters) – A team of private equity firms Bain and Hellman & Friedman have agreed to buy Swedish alarms firm Securitas Direct from Swedish rival EQT, the firms said on Thursday.
The deal values the business at about 20 billion Swedish Kronor ($3.1 billion), a person familiar with the matter said.
The pair beat a rival bid from power tools maker Stanley Black & Decker and Carlyle Group for the Malmo, Sweden-based business owned by EQT, Reuters earlier reported.
Clayton Dubilier & Rice, which had been working with the Stanley Black & Decker team, dropped out of the process before final bids were due earlier this week, leaving its partners to continue together.
The deal stands out as a rare example of private equity firms outbidding a corporate buyer that could extract synergies from combining with a rival firm.
It also marks the first deal from Hellman & Friedman’s latest $8.9 billion buyout fund, raised in 2009.
EQT had been hoping Securitas Direct, which claims more than 20 percent of Europe’s monitored alarms market, would fetch more than 20 billion Swedish crowns.
The private equity firm backed by the Wallenberg family took the business private three years ago for 10.1 billion Swedish crowns, two years after the unit was demerged from parent Securitas AB (SECUb.ST), the world’s second-biggest security services firm.
Securitas Direct made earnings before interest, tax, depreciation and amortisation (EBITDA) of 1.3 billion crowns in 2009 on revenue of 5.5 billion.
Both Stanley Black & Decker and Carlyle have been working on other deals, with Stanley recently hiring banks to advise on a bid for rival Swedish hi-tech security firm Niscayah.
Carlyle, meanwhile, agreed a 1 billion pound deal on Thursday to acquire roadside rescue business RAC from insurance giant Aviva . (Editing by Steve Slater and Will Waterman) ($1=6.514 Swedish Crown)