G4S hives off its Israel business for £88m
Global security company G4S has disposed of its Israeli arm as part of its ongoing portfolio management programme.
Israeli private equity fund FIMI has agreed to acquire G4S Israel for an estimated net consideration of £88m (NIS425m), which will be payable in cash upon completion.
The sale will transfer all of G4S’s assets in the country to FIMI, which includes security equipment and screen technology in some Israeli prisons and access systems and cameras at crossing points on the country’s borders.
Its senior management team and over 6,000 employees will also remain in place following the transaction.
The disposal of its Israeli security arm, which generated a pretax profit of £8m last year, does not mark a total withdrawal from the country as G4S said it would continue to own and invest in its national police training centre Policity in tandem with local partners.
Ashley Almanza, G4S Group Chief Executive Officer said: “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.
“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.”
While the move has been described as a ‘commercial decision’ by the company, G4S has faced significant protests by some activists for its business interests in Israel in recent years.
Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →