Christinne Muschi/ReutersStéphan Crétier, chief executive of Garda World Security, in 2007.
QUEBEC CITY _ The founder, chairman and chief executive of Garda World Security, an armored car and security company based in Montreal, joined forces with a private equity fund to make a $1.1 billion offer to take the company private on Friday.
In league with the chief executive, Stéphan Crétier, is Apax Partners, the London-based private equity. The consortium’s $12-a-share offer includes the assumption of $625 million in debt.
Garda was founded in 1995 by Mr. Crétier with an investment of $25,000. The company went on a largely debt financed shopping spree during the 2000s, which made it the second largest cash handling company in the United States after Brink’s. But the financial crisis in 2008 and problems with its acquisition of ATI Systems International caused to the company to violate the terms of some loan agreements. And its stock price plummeted.
The company eventually refinanced its debt and its operations have recovered along with the financial services sector. But the company’s relatively high debt had depressed its share price.
The consortium’s offer is 30 percent higher than Thursday’s closing share price on the Toronto stock exchange. Following the recommendation of a committee of independent directors, Garda’s board has unanimously endorsed the offer. Mr. Crétier abstained from that process.
In a statement, Mr. Crétier suggested that Garda would be able to acquire additional companies more easily once it stops being publicly traded.
“We intend to continue to pursue our growth strategy both organically and through acquisitions, which we can more efficiently accomplish as a private company,” Mr. Crétier said.
The company separately announced on Friday that it had earned $4.9 million in its second quarter, up from $3.8 million during the same period last year. Revenue rose 13.7 percent, to $337 million during the quarter.
Article source: http://dealbook.nytimes.com/2012/09/07/garda-security-gets-1-1-billion-buyout-offer/?partner=rss&emc=rss