BizFeed: AlliedBarton to be Acquired for $1.67 Billion
AlliedBarton to be Acquired
The News: One of the nation’s largest providers of security guards is changing hands. AlliedBarton, the Conshohocken, Pa.-based security giant, has been acquired by French investment firm Wendel for $1.67 billion. The deal is expected to close by the end of the year.
The New York Times explains: “Wendel said it would make an equity investment of about $670 million for a 96 percent stake in the security firm, with the remaining stake owned by AlliedBarton’s management. Blackstone acquired AlliedBarton in 2008 from MacAndrews & Forbes Holdings, a firm controlled by the financier Ronald O. Perelman, for an undisclosed amount.”
Bill Whitmore, chairman and CEO of AlliedBarton, said the company is “very excited to join Wendel. Their long-term investment philosophy and successful track record of building world-class companies will help AlliedBarton continue its extraordinary growth and achieve the next level of success.”
Why It Matters: AlliedBarton is a behemoth, with $2.18 billion in revenue last year and 60,000 employees helping to protect 3,300 customers. It counts approximately 200 of the Fortune 500 as customers.
“The market for outsourced security officer services in the U.S. is estimated to be greater than $20 billion,” Wendell said in a statement. “The industry, and in particular, AlliedBarton, has demonstrated strong growth over a long period of time and proven quite resilient during economic downturns. Over the years, AlliedBarton transformed from a regional participant to an industry leader with a national presence. The company integrated 12 acquisitions since 1998 and developed a unique go-to-market approach driven by customized, vertical segment expertise.”
2. Drexel Lays of Dozens
The News: With a smaller incoming freshman class, Drexel University has laid off “several dozen” of employees, according to the Philadelphia Inquirer. It’s all part of an effort to save $18 million, the report said. No faculty members were cut, just administrative staff.
Why It Matters: Drexel says it voluntarily made class sizes smaller and the layoffs are a reflection of that. Smaller classes mean less revenue. But is it a sign of things to come for colleges? As class sizes grew exponentially in the 1990s and 2000s, universities became increasingly profitable and were able to buy up real estate all around them. But people are having less children now and as time goes on, the college bubble could burst.
3. Most Millennials Expect Social Security to go Bankrupt Before they Retire
The News: Now for some news that should instantly get you depressed. Forbes reports that 60 percent of millennials expect social security to go bankrupt before they retire.
Why It Matters: Either millennials will start saving now or we’ll have a serious retirement crisis on our hands in 30 years. Forbes offers five steps to plan. Here are two that caught my eye:
Aim High: “Kristen Robinson, Senior Vice President, Women and Young Investors for Personal Investing at Fidelity Investments, recommends aiming to contribute 15 percent, especially if a twentysomething has already paid off their student loans.”
Use employer resources for allocation advice: “Contributing to a retirement account is half the battle. For the uninitiated, determining how to allocate that money can be downright confusing. While most experts agree that millennials should choose riskier investments as time is on their side, it might not be clear what that means in practice.”