London-based private equity firm BC Partners is close to selling a large portion of its controlling stake in GardaWorld back to its management team
In a transaction that values the Canadian security services firm at approximately $13.5 billion, BC Partners is divesting a majority of its 51% stake in GardaWorld to the company’s founder and chairman, Stephan Cretier, and other members of the management team.
Deal Structure
According to sources familiar with the matter, the deal is backed by a group of private credit firms led by HPS Investment Partners. These investors are committing several billion dollars to support the buyout and will secure a minority stake in GardaWorld alongside BC Partners.
GardaWorld’s Transformation
Under BC Partners’ ownership since 2019, GardaWorld has undergone significant transformations. The company, originally a pure-play security services firm, has expanded into AI-enabled surveillance monitoring, risk intelligence platforms, and cash automation. In the past five years, GardaWorld has doubled its earnings before interest, tax, depreciation, and amortization (EBITDA) to approximately $1 billion.
BC Partners’ Exit Strategy
This exit comes as BC Partners focuses on returning money to its investors after raising its latest flagship fund in 2022. The firm is expected to generate proceeds of over €11 billion (approximately $12 billion USD) for its limited partners and co-investors in the last 18 months.
Recent Transactions
The GardaWorld exit follows a string of recent transactions by BC Partners, including:
- Springer Nature AG & Co. IPO: The firm’s publishing services subsidiary went public this month.
- Forno d’Asolo SpA sale: BC Partners agreed to sell the Italian frozen pastry and bakery products maker to a consortium backed by Investindustrial and the Bagnoli family.
- IMA Industria Macchine Automatiche SpA stake sale: The firm sold a minority stake in the Italian machinery maker to U.S. merchant bank BDT & MSD Partners.
- PetSmart minority stake divestment: BC Partners agreed to sell a minority stake in the pet supply retailer to Apollo Global Management Inc.
Investors’ Commitment
The deal is expected to close this week, with discussions advancing towards a formal agreement. HPS Investment Partners will also secure a minority stake alongside BC Partners, according to sources.
Comment from BC Partners and GardaWorld Representatives
BC Partners declined to comment on the matter, while representatives for GardaWorld and HPS could not be immediately reached outside business hours in North America.
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