Wendel SE (WNDLF), a French investment firm, announced Tuesday that its portfolio company AlliedBarton Security Services has decided to merge with Universal Services of America, creating the leading security company in North America.
The transaction is expected to close in the third quarter of 2016, subject to customary regulatory approvals.
AlliedBarton Security Services is a portfolio company of Wendel, and Universal Services of America is a portfolio company of Warburg Pincus and Partners Group.
The combined company will operate under the AlliedUniversal brand following the close of the transaction. It is expected to have total annual revenues of approximately $4.5 billion.
The two companies have similar sizes, both operate in North America and have a shared value proposition as well as aligned values.
Steve Jones, Chief Executive Officer of Universal Services of America, will serve as the CEO of the combined company and Bill Whitmore, CEO of AlliedBarton, will serve as its Chairman of the Board.
Warburg Pincus and Wendel will be lead investors in the combined entity with equal voting rights and three board members each. Partners Group and members of management will also have ownership interests in the combined company.
Wendel acquired AlliedBarton Security Services in December 2015 for approximately $1.68 billion.
Upon completion of the transaction, in exchange for its contribution of its shareholding in AlliedBarton Security Services, Wendel SE would receive approximately 33% of the shares of AlliedUniversal and a cash payment of approximately $387 million.
Warburg Pincus would also hold approximately 33% of the shares and Partners Group approximately 17%.
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