G4S to divest US Government Solutions business

G4S, the FTSE 100 international security solutions group, has announced plans to divest its US Government Solutions business.

G4S, the FTSE 100 international security solutions group, has announced plans to divest its US Government Solutions business.

The decision follows a strategic business review, and said it believes that an alternative parent company would be able to create or add more value to the business than it is able.

"As a non-US parent, with restricted access to important commercial data, our ability to manage the business and share best practice is severely limited," it explained.

The business, which provides security, fire protection, facilities management, training and mine clearance services to US Government organisations including the Departments of Energy, Homeland Security and Defense, operates sensitive government contracts requiring high level security clearances and is therefore managed under a proxy board structure in order to comply with US national security regulations.

In 2012 the business generated annual revenues of around £400m.

The divesment process is expected to take around six months.

G4S will retain its highly-regarded US commercial security business which provides a broad range of security services and technology to commercial companies and Government departments at a Federal, State and local level, where high level security clearances are not required.

G4S's share price rose 0.99% to 29.80p by 14:10.

NR

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020