Charterhouse Capital mulls $1.6-bn bid for G4S's cash-solutions business
21 Oct 2013
British private equity firm Charterhouse Capital Partners is considering a £1 billion ($1.6 billion) bid for G4S's cash-solutions business, Bloomberg yesterday reported, citing sources.
Charterhouse has approached banks and its investors over financing a deal for the unit, which transports cash using high-security vehicles and manages ATM machines.
G4S is aware of Charterhouse' plan and has discussed the matter internally, said one of the sources, but it may decide against a sale of the unit, the report said.
Last month The Sunday Times had reported that Stockholm-based hedge fund Cevian Capital AB, a shareholder in G4S, had urged the company to sell units including the cash solutions business.
Crawley, UK-based G4S, formerly Group 4 Securicor, has its origins in Copenhagen, Denmark, having first started operations in 1901 as a guarding business by its founder Marius Hogrefe.
G4S was formed through the 2004 merger between Securicor plc and Group 4 Falck A/S's security business, and moved its headquarters to the UK.
It provides guarding services at various airports including Heathrow Airport, Oslo Airport, Brussels Airport and Schiphol Airport as well as at various facilities belonging to the US, UK, Canada and European Governments.
It also operates custody facilities, including prisons and electronic security systems. In addition, it provides cash management and logistics services for the main British and European Banks.
G4S owns the Wackenhut Corporation, a leading provider of security services in North America, and provides revenue protection services for railway companies across the UK.
It is the second-largest non-governmental employer in the world, with more than 1.15 million employees, after US retail giant Wal-Mart.
G4S reported 2012 revenues of £7.3 billion.
