Securitas to Buy Stanley Security for $3.2 Billion
The Swedish company, Securitas AB's, announced on Thursday that it will buy the alarm side of Stanley Black & Decker, a U.S.-based tools manufacturer. The $3.2 billion acquisition is expected to more than double Securitas' annual revenue from electronic security, according to Reuters, meaning future earnings in this space of roughly $3 billion.
Stanley Security offers its clients a portfolio of alarm monitoring, systems integration, specialized healthcare solutions, and more. The acquisition will further the emphasis Securitas is placing on intelligent solutions and electronic security, as opposed to continuing to rely on security guards. Stanley Security alone is also expected to generate a revenue of almost $1.7 billion by the end of 2021, according to Bloomberg.
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Reuters also noted that Securitas “has been pushing for years to increase sales of electronic security services and reduce its exposure to staff-intensive guarding. The firm's biggest cost is paying salaries for its 355,000 employees.”
The purchase is the largest of its kind in Securitas’ history and will be entirely funded by a Swedish lender, SEB AB, using an underwritten bridge loan. The acquisition, pending regulatory approvals, is expected to close during the first six months of 2022.
With the finalization of the deal, Stanley Security will in fact return home—Stanley Black & Decker bought the company, then called Securitas Systems, in 2011.
Earlier in December, Securitas also announced its acquisition of Supreme Security Systems for $20 million. The purchase of the U.S. alarm monitoring company adds additional intrusion, video, fire and access control systems, and alarm monitoring services to the Securitas portfolio.
These recent acquisitions piggyback on an overall recent emphasis on the electronic security market. In 2020, Securitas purchased Techno Security, a Spanish-based integrated security services company, and FE Moran Security Solutions, another U.S. alarm monitoring and electronic security systems integrations business. The acquisitions cost €22 million ($25 million) and $53 million, respectively.