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