Stanley Security

History

2021: Securitas bought Stanley Security for $3.2 billion

On December 8, 2021, the Swedish company Securitas announced the purchase of an electronic security solution company from rival Stanley Black & Decker. The value of the transaction amounted to $3.2 billion.

The acquired business, known as Stanley Security, is expected to generate nearly $1.7 billion in revenue in 2021 and give the Swedish company greater global reach as it seeks to double its sales with higher-margin building security solutions and protective software by 2023, the statement said.

Securitas acquired Stanley Security

Stanley Security is a division of Stanley Black & Decker. The company provides IT security and video surveillance systems, in particular video analysis, territory surveillance, biometrics, access control systems, intrusion detection and high-security computer networks.

Together with Stanley Security, our largest acquisition in history, the profile of Securitas changes from a leading security company with electronic security solutions to a leading partner in intelligent security solutions, the company said in a statement. - The future of security is built on a combination of global presence, connected technologies and intelligent data use, and together with Stanley Security Securitas is ideal for winning this environment.

Securitas said it expects to complete the deal in the first half of 2022, and that the acquisition costs will be about $135 million, most of which will be covered in 2022 and 2023.

The transaction will be fully financed through a guaranteed interim loan from Swedish lender SEB AB, which is expected to be refinanced through long-term debt financing and a $915 million share issue.

Securitas said the purchase price is about 13 times higher than Stanley Security's estimated adjusted earnings before interest, tax, depreciation and amortization in 2021, including cost synergies of about $50 million.^[1]

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