BC Partners, a private investment firm with €40bn in AUM across private equity, private debt, and real estate strategies, has agreed to sell the majority of its stake in Garda World Security Corporation (GardaWorld) in a deal that values the business at CAD13.5bn ($9.73bn).
The transaction will see Founder, Chairman, President and CEO Stephan Crétier, together with select members of Management, acquire approximately 70% of GardaWorld while funds advised by HPS Investment Partners (HPS Partners), leading a group of minority investors, will hold the remaining equity interest. BC Partners will also continue to hold a minority interest.
GardaWorld, founded in 1995, has established itself as a global leader in the security industry, spanning subsidiaries including GardaWorld Security, Crisis24, and ECAMSECURE and Sesami. The business, which covers security services, AI-enabled security technologies, integrated risk management and cash automation solutions, serves over 132,000 professionals across North America, EMEA, and APAC.
BC Partners acquired a majority stake in GardaWorld in 2019 through a bilateral transaction which valued the company at CAD5.2bn making it the largest private buyout in Canadian history at the time. According to a press statement, under BC Partners’ ownership, GardaWorld has delivered strong organic growth supported by extensive M&A activity (over 25 strategic and financially accretive transactions since 2019), increasing profit margins from circa 14% to circa 17% and doubling profitability to over CAD1bn in operating profit.
Kirkland & Ellis and Osler acted as lead legal counsel to BC Partners, with Simpson Thacher & Bartlett and Langlois Lawyers acting as legal counsel to GardaWorld, Stephan Crétier, and the senior management of GardaWorld. Latham & Watkins acted as lead legal counsel to HPS Partners.
The transaction, which is subject to customary closing conditions, is expected to close by Q1 2025.