BC Partners to sell majority stake in GardaWorld for C$13.5bn

January 2025 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

January 2025 Issue

GardaWorld Security Corp.’s top executives have agreed to take majority control of the company in a deal valued at C$13.5bn, after private equity firm BC Partners agreed to sell its controlling stake in the business.

According to a statement announcing the deal, Stephan Cretier, founder, chairman, president and chief executive of GardaWorld, along with some management executives and investment firm HPS Investment Partners, Oak Hill Advisors and One Investment Management, will buy a 70 percent stake in the company. Private credit firm HPS Investment Partners will hold the remaining equity interest. BC Partners will also continue to hold a minority interest in GardaWorld. The deal is expected to close by 28 February 2025, subject to customary closing conditions.

The transaction will be leverage neutral with respect to GardaWorld and will not involve any financing at the level of GardaWorld or its subsidiaries.

“Our partnership with GardaWorld is an excellent example of what we would consider a definitive ‘BC deal’, partnering with an impressive entrepreneur to help transform and grow a high-potential business in a defensive growth sector,” said Paolo Notarnicola, partner and co-head of services at BC Partners. “Since partnering with GardaWorld in 2019, we have seen the company go from strength to strength, with operating profit more than doubling to over C$1bn.

“In addition, we have worked with management to create four global champions under one roof, with market leaderships in security services, AI-enabled security technologies, integrated risk management and cash automation solutions. We are pleased with today’s announcement which enables a visionary founder in Stephan to take control of the company, and we remain fully committed to the company’s future success as a minority investor,” he added.

“In an increasingly complex world, I have discovered that prominent organizations aspire to partner with a vetted entrepreneurial success story,” said Mr Crétier. “GardaWorld is more than one entrepreneur. It is a group of truly aligned like-minded leaders committed to doing what is best for clients, employees, and stakeholders. I am humbled by the professionalism and dedication of my international group of colleagues and the unique DNA we have developed. This is what I call a winning team.

“I thank BC Partners for their partnership over the last five years and welcome HPS Partners’ expanded investment and our group of minority investors to GardaWorld as we continue our winning journey,” he continued. “Their success over the last few years has made them a global powerhouse, and we are honoured that they recognize our value as a performance-driven team by investing in our company.”

Founded in 1995, GardaWorld has established itself as a global leader in the security industry by building independent, robust operating businesses. These businesses are designed to deliver strong financial profiles, offer large runways for growth, and drive innovation and evolution within the industry.

Since partnering with GardaWorld in 2019, BC Partners has delivered strong organic growth, doubling operating profit to over C$1bn. This performance has contributed to an annual return on investment (IRR) of 30 percent since going private in 2012.

“GardaWorld has consistently generated compelling results as it executes on its commitment to delivering trusted and innovative security solutions, and we believe that its ability to evolve with the rapidly changing security needs of the world’s leading companies positions it well for continued success,” said Scot French, governing partner at HPS. “We are excited to expand our longstanding partnership with the team as they continue to build on GardaWorld’s strong momentum and further accelerate its growth trajectory.”

BC Partners is a leading investment firm with over €40bn in assets under management across private equity, private debt and real estate strategies. Since its foundation, the firm has completed over 120 private equity investments in companies with a total enterprise value of over €160bn and is currently investing its 11th private equity buyout fund.

Richard Summerfield