Securitas enters deal to acquire Stanley’s electronic security business

Stanley Security is a highly reputable provider of electronic security solutions with operations in 12 markets globally. It’s expected to generate sales of nearly US$1.7 billion in 2021, of which around 40% is recurring revenue.

There are “significant commercial synergy opportunities” to this deal with over 500,000 existing as well as new clients adding “significant scale and innovation potential” in the electronic security market, while at the same time creating “a leading platform” upon which Securitas can accelerate its planned growth.

The acquisition is expected to complete in the first half of 2022, subject to the customary regulatory approvals and closing conditions.

Transformed dynamics

By acquiring Stanley Security, Securitas will transform the dynamics of the security industry, duly creating a unique combination of presence, connected technology and the intelligent use of data. Securitas’ stated strategy is to deliver comprehensive, scalable and innovative security solutions to meet its clients’ increasingly complex security needs.

Stanley Security’s complementary offer of tech-enabled security, together with complementary geographical coverage, is said to be “in perfect alignment” with Securitas’ ambition and fits with the company’s desire of doubling sales from higher margin security solutions and electronic security by 2023.

Headquartered in Indianapolis, Stanley Security boasts a 30-year history of protecting its clients worldwide through a portfolio of security services, ranging from alarm monitoring through to systems integration. The acquisition perimeter includes commercial electronic security and healthcare solutions, where Stanley Security harbours deep expertise and an extensive innovation pipeline, but excludes door automation.

Today, Stanley Security is one of the most recognised electronic security providers worldwide, with approximately 7,800 employees operating through approximately 200 locations and 16 monitoring centres in the US, Canada, the UK, Mexico, France, Sweden, Belgium, the Netherlands, Denmark, Finland, Norway and Ireland.

Largest acquisition

Commenting on the deal, Magnus Ahlqvist (president and CEO at Securitas) stated: “This deal means that Securitas becomes an exceptional player in the security industry. Together with Stanley Security, which represents our largest acquisition in history, the profile of Securitas changes from being a leading security guarding company with electronic security and solutions capabilities to become a leading intelligent security solutions partner.”

Ahlqvist continued: “The future of security is built around the combination of global presence, connected technology and the intelligent use of data. Together with Stanley Security, Securitas is perfectly placed to win in this environment. Together, our offer is cutting-edge. We will be in an outstanding position to deliver safety and peace of mind to clients and communities around the world.”

Given the combined client proposition and a strong sales structure, Ahlqvist expects the business to deliver higher and more profitable growth than ever before. “Going forward, 50% of our profit contribution will be generated through high-margin electronic security and solutions sales. This is in addition to the strong profitability focus that we’re already driving through our transformation programmes and active portfolio management, which will also lead to a structurally higher margin profile in the business.”

Tony Byerly, president of global electronic security at Securitas, explained: “We’re very excited to bring together these two iconic security companies, each of them with a rich history, a culture of success and with the client base at their heart. We look forward to welcoming our new colleagues. The expanded competencies, expertise and leadership across the entire electronic security value chain globally will serve our respective clients even better and significantly increase our competitive edge.”

Shareholder value

James Loree, Stanley Black & Decker’s CEO, responded: “The sale of Stanley Security is consistent with our commitment to generate substantial shareholder value and allows us to sharpen our strategic focus on growing our core businesses, while also returning capital to investors through a significant share buy-back. This transaction is a result of our active approach towards portfolio management. The attractive valuation we received reflects the investments we made in transforming our security business over the last several years.”

In conclusion, Loree noted: “The business is well positioned for ongoing growth within Securitas, which is a global leader in the security industry. On behalf of the entire Stanley Black & Decker organisation, I want to thank our Stanley Security team members for their valuable contributions over the years.”

Shaun Kennedy, country president for Securitas here in the UK, stated: “At Securitas, we would like to help our clients focus on what really matters to them by providing intelligent security solutions and value for money. When we’ve integrated the Stanley Security business into our existing global structure, we will then be able to provide a wider range of leading technology solutions at scale in more countries, delivered by thousands of highly skilled technicians, alongside cutting-edge innovation. By combining global presence and connected technology, and through an intelligent use of data, we will be able to transform the dynamics of the security industry.”