Rival Groups Set to Bid on Securitas Direct

Two rival consortium are gearing up for bids to buy Swedish alarms firm Securitas Direct, Reuters reported. Stanley Black & Decker is expected to team up with the Carlyle Group on a bid for Securitas Direct, which is currently owned by Swedish private equity group EQT. A second consortium of Bain and Hellman & Friedman is also expected to make a bid, Reuters reported.

(Reuters) – Two rival consortiums are set to bid for Swedish alarms firm Securitas Direct, despite a late exit by private equity firm Clayton Dubilier & Rice from one of the bidding groups, people familiar with the situation said.

Stanley Black & Decker is expected to bid with U.S. private equity group Carlyle for the business, owned by Swedish private equity group EQT, two of the people said.

A second consortium of Bain and Hellman & Friedman is also expected to make a bid by Monday’s deadline, the people said.

Bain, Hellman & Friedman and Clayton Dubilier & Rice declined to comment. Carlyle and Stanley Black & Decker were unavailable to comment.

Clayton Dubilier & Rice had been working with Carlyle and power tools maker Stanley Black & Decker on a joint bid after all three progressed into the second round of the sale process.

The firm, which in May teamed up with Axa Private Equity to acquire engineering firm Spie, recently pulled out of the process, leaving its two partners to continue alone, the people said.

EQT, the private equity group backed by the Wallenberg family, 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 ($3.1 billion).

EQT 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.

Stanley Black & Decker, the only remaining corporate bidder in the process after the first round of bids in May, has also emerged as a potential suitor for another Swedish firm Niscayah (NISCb.ST), a maker of high-tech IT-based security and surveillance solutions. ($1=6.457 Swedish Crown) (By Simon Meads; Editing by Jon Loades-Carter)