FIMI Fund in advanced talks to buy G4S Israel

Ishay Davidi

FIMI is negotiating to acquire the security company for NIS 350-400 million, sources inform "Globes."

FIMI Opportunity Funds, led by Ishay Davidi, is a leading candidate to acquire security services company G4S Israel (formerly Hashmira) for an estimated NIS 350-400 million, sources inform "Globes." FIMI has been granted a period of exclusivity to complete due diligence for G4S Israel. As far as is known, the price is derived from a multiple of 6-7 on G4S's estimated NIS 60 million earnings before interest, taxes, depreciation, and amortization (EBITDA).

G4S Israel has 8,000 employees and an estimated annual revenue of NIS 500 million. It is part of the global G4S group, a global security services giant with over 610,000 employees in over 100 countries, according to the company website. G4S, listed on the London Stock Exchange, has decided to wind up its business in Israel, in addition to cutting back on its activity in other markets. The company website lists 15 countries in which it has 44,000 employees, as candidates for winding up its business.

G4S Israel, founded as Hashmira by the Shermister family in 1937, became part of the 64S group in 2002, and currently contains four specialist business divisions: guarding and security services; an electronic security division offering warning systems for detecting break-ins and detecting and putting out fires, closed circuit television systems, solutions for preventing theft and loss , and control systems; a division for designing, supplying, installing, and maintaining advanced monitored computer systems, such as gates for detecting metal and imaging machines; and a division for planning, installing, and maintaining low-tension systems, such as building or room control.

Another candidate for the acquisition of G4S Israel was Electra Ltd. (TASE: ELTR) managed by CEO Itamar Deutscher, which recently withdrew from the negotiations after conducting due diligence. Electra today announced the acquisition of 100% of the activity of the security business of the HASH Security Group's Bank Patrol Unit at a company value of NIS 20 million. The unit, founded in 2013 by Shuashi Arik Regev, has 100 trained combatants with special training on motorcycles with special equipment and technology. The unit's activity is controlled from a command and control center that makes it possible to deliver messages and tasks to the field quickly and efficiently.

Published by Globes [online], Israel business news - - on August 10, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Ishay Davidi
Ishay Davidi
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