British group G4S bids for Danish cleaning and services group ISS

Oct 17, 2011, 8:47 GMT

Copenhagen - Danish cleaning and services giant ISS Monday said it was to be acquired by British security solutions group G4S for 5.2 billion pounds (8.2 billion dollars).

'The combination of ISS and G4S is a good fit both industrially and culturally,' ISS board chairman Ole Andersen said in a statement.

The two groups hoped to 'increase their exposure to the significant growth opportunities in emerging markets' such as Asia, Eastern Europe, Latin America, Israel, South Africa and Turkey, he said.

Half of the bid was to be in cash and half in new shares in the enlarged G4S group, the statement said.

The combined group was estimated to have over 1 million employees in more than 130 countries and had a combined revenue of 15.9 billion pounds in 2010.

G4S offers services ranging from securing borders and energy utilities to transporting cash.

The deal hinged on approval from regulatory authorities and a G4S shareholders' meeting.

The combined group would be traded on the bourses in London and Copenhagen.

The ISS Group was founded 1901 in Copenhagen and offers services ranging from cleaning to catering and support.

Its owners are Goldman Sachs and Swedish private equity firm EQT. In March, the ISS Group postponed a planned float of shares, citing 'market uncertainty'.