Allied Universal announced it has agreed to acquire U.S. Security Associates for approximately $1.0 billion. Based in Roswell, Georgia, USSA is one of the leading providers of security and related services in the United States, employing more than 50,000 security professionals serving several thousand clients across a wide range of industries. USSA generated 2017 pro forma revenues and Adjusted EBITDA of c. $1.5 billion and $95 million, respectively. The transaction is expected to close by the end of 2018, subject to customary regulatory approvals.

Allied Universal intends to fund the transaction with a combination of additional indebtedness and up to $200 million of equity from existing shareholders, including up to $80 million from Wendel, increasing its total investment to $380 million. Wendel and Warburg Pincus are expected to each maintain approximately one-third economic ownership.

The combination is expected to significantly enhance Allied Universal's national presence and customer service capabilities and to generate approximately $55 million in annual synergies over the next 24 months. It will also enhance Allied Universal's presence in Canada, as well as expand its footprint to Central America and the United Kingdom.

Pro forma for the transaction, Allied Universal will employ approximately 200,000 security professionals and generate combined pro forma revenues of $7 billion. Including anticipated synergies, the Company's leverage ratio per its financing documentation is expected to improve to below 6.5x.

"I am excited to welcome the USSA team to the Allied Universal family," said Steve Jones, Chief Executive Officer of Allied Universal. "USSA has built itself into one of the leaders in the security industry over the years and provides a unique suite of security solutions to a wide array of clients across industry verticals. This transaction aligns with our long-term growth strategy of acquiring scalable businesses with significant potential when combined with the Allied Universal platform. I look forward to collaborating with the USSA team to maximize the value that together we will bring to our customers and in identifying new ideas in the security space," said Jones.

Wendel North America CEO David Darmon said, "As one of the two principal shareholders of Allied Universal, Wendel is supporting the Company's continued growth as the industry continues to evolve. This is consistent with our original investment thesis and we think will further enhance the Company's leadership position."