Goldman PE to Buy U.S. Security Associates

Goldman Sachs Capital Partners is in talks to buy U.S. Security Associates, sources say.

Wind Point Partners, a Chicago PE firm, is the seller. On Thursday, Standard & Poor’s LCD reported that Goldman was in the market for a $435 million loan to back its buy of U.S. Security Associates. Goldman, Keybanc Capital Markets and Wells Fargo are leading the financing , LCD said.

Goldman Sachs Capital Partners is buying U.S. Security, peHUB has confirmed. In June, an FTC regulatory filing revealed that Wind Point was selling U.S. Security to Valour Holdings. Valour is believed to be the holding company formed by Goldman to buy U.S. Security.

Established in 1993, Roswell, Ga.-based U.S. Security provides security guard, janitorial and maintenance services. The company employs more than 33,000 people and produces nearly $900 million in revenue. Wind Point bought the company from GTCR in 1999, Mergers & Acquisitions reported. The company, at that time, was known as Outsource Partners, Buyouts said.

Goldman Sachs Capital Partners focuses on PE investments in large cap companies. Equity investments typically range from $200 million to $800 million or more, Goldman’s PIA web site said. The firm is currently investing from GS Capital Partners VI, which raised $20.3 billion in 2007.

U.S. Security is one of the five largest security firms in the U.S., according to a December 2010 report from Moody’s Investor Services. The company competes against Securitas AB, G4S and Allied Security. Revenue for U.S. Security hit $741 million for the 12 months ended Sept. 30, 2010, compared to $641 million in 2008, Moody’s said.

U.S. Security is very acquisitive and has done about 27 deals since 1994, according to the WPP web site. Last September, U.S. acquired Day & Zimmermann Commercial Security Services. Revenue for U.S. Security was expected to be greater than $800 million after the Day & Zimmermann deal, Moody’s said.

Goldman declined comment. Officials for WPP and U.S. Security could not be reached for comment.