PE Finds New Meaning in Safe Investment

Bain Capital and Hellman & Friedman have agreed to acquire Securitas Direct from EQT for SEK 21 billion ($3.2 billion). The buyers may also pay an additional SEK 0.9 billion ($138.6 million) depending on the company's future performance. Kirkland & Ellis is legally advising the buy side on the transaction. Securitas provides security services, such as burglar alarms, smoke detection and property protection.

Since the beginning of 2009, 38 PE investors have invested in 40 U.S.-headquartered companies engaged in the Security Services industry, according to the PitchBook Platform. Acquisitive growth strategies have been behind many of the transactions with half of the 40 deals being add-on acquisitions, and, despite a few anomalies, smaller deals have also been the norm with a median deal size of $24 million for 2009 and only $17 million for 2010. The most active investors in the industry during the time period have been Egis Capital Partners, Expedition Capital Partners and LaSalle Capital Group, each with 4 deals apiece.