PE arm of Alvarez buys G4S Government Solutions

02 December 2014 Consultancy.uk

The private equity arm of consulting firm Alvarez & Marsal has acquired G4S Government Solutions, a US subsidiary of global security firm G4S. The deal, which is part of G4S GS’ corporate spinout and plans to go private, is estimated to be worth $135 million.

G4S was founded in 1960 as Wackenhut, and operates under its current brand since 2005 when the company merged with G4S, with more than 625.000 employees in 120 countries the largest security player of the globe. In 2011 its activities were bundled into the ‘G4S Government Solutions’ label. The firm has 65 employees at its Palm Beach Gardens headquarters and more than 8,800 employees worldwide. G4S GS works mainly for large US public sector institutions, such as the Department of Energy, Department of Defense, Department of Homeland Security, Department of Justice and Department of State. Other clients include US Federal, State and Local agencies and commercial clients worldwide.

Centerra Group

Last week G4S Government Solutions announced plans to carve itself out of G4S, and go private through the sale to Alvarez & Marsal Capital Partners – the private equity arm of business advisory firm Alvarez & Marsal. As part of the $135 million deal the firm has been rebranded to ‘Centerra Group’. According to Paul Donahue, President and CEO of Centerra, the sale provides the firm with the financial and operational flexibility to grow and enter new markets such as nuclear plant and military base security, as well as new geographies abroad.

From a service perspective, the changes as a result of a new owner will be minimal, says Donahue: “Our entire management team has been asked to stay on board. Our corporate culture remains intact. We want our customers to expect the same high level of service and understand that we will continue to perform with professionalism and integrity."

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