London-based G4S Plc (LSE: GFS), a leading global integrated security company, said it agreed to sell G4S Israel to Tel Aviv-based private equity firm FIMI Opportunity Funds (FIMI) for NIS425 million ($112 million) in cash.
FIMI is the leading private equity firm in Israel with more than $3 billion in assets under management. Since its founding by Ishay Davidi in 1996, the firm has completed 83 investments, executed 52 exits with total transaction value of more than $4.5 billion, and raised six funds. FIMI typically invests in mature Israeli and Israeli-related companies.
G4S will retain a presence in Israel through ownership and continued investment in the flagship national police training centre Policity in partnership with FIMI and Shikun & Binui, a major Israeli infrastructure and real estate group.
The sale is subject to government and customary regulatory approvals which are expected within the next three months. The net proceeds will be used for general corporate purposes.
G4S Israel provides manned security and security systems across Israel. In the year to 31 December 2015, G4S Israel generated profit before taxation of £8m(1) and, as at 31 December 2015, it had gross assets of £56m(1).
As part of the transaction, senior management in G4S Israel will remain with the business at completion.
“The sale of our business in Israel is part of our active portfolio management programme announced in 2013 to improve our strategic focus and capital discipline,” said G4S Group chief executive Ashley Almanza. “G4S Israel is a well-managed business that will grow and prosper as part of the FIMI group providing a positive future for our 6,000 colleagues in Israel and long term, high quality service and support to customers operating in the Israeli market.”
G4S is a leading global integrated security company specializing in the provision of security services and solutions. The company is active in over 110 countries and has 600,000 employees.
Photo: FIMI Founder and CEO Ishay Davidi.