Stephan Crétier and HPS Investment Partners to recapitalize GardaWorld in C$13.5 billion transaction

Alongside Founder, Chairman, President, and CEO Stephan Crétier, funds advised by HPS Investment Partners (HPS), a leading global investment firm with approximately $147 billion of assets under management, together with Oak Hill Advisors (OHA), One Investment Management (OneIM), and others, have reached a definitive agreement to acquire BC Partners’ majority equity interest in Garda World Security Corporation (GardaWorld) in a transaction valuing GardaWorld at C$13.5 billion.

Following the close of the transaction, Stephan Crétier, together with select members of management, will hold approximately 70% of GardaWorld, and HPS, which is leading a group of sophisticated minority investors, will hold the remaining equity interest. BC Partners will also continue to hold a minority stake.

Founded in 1995, GardaWorld established itself as a global leader in the security industry by building independent, robust operating businesses. These businesses are designed to deliver strong financial profiles, offer large runways for growth, and drive innovation and evolution within the industry.

• GardaWorld Security: Global provider of security and protection for people, places, and assets. GardaWorld Security delivers operational excellence and strives to continuously raise industry standards around service delivery and people management. The business maintains a market leadership position with a long runway of profitable growth and potential to accelerate growth in market share, particularly in the U.S. 
• Crisis24: A global, AI-enhanced platform for travel risk management, mass notifications, critical event management, crisis-security consulting, and personal protection solutions, including a global medical concierge practice, Crisis24 allows prominent organizations, disruptive brands, and influential people to operate with confidence in an uncertain world. With a uniquely integrated and scalable platform, Crisis24 has an unrivaled financial profile that allows for strong investment in R&D, technology, and innovation. 
• ECAMSECURE: The integration of advanced AI technology and expert human resources serves as the foundation for uncompromising remote and virtual surveillance. ECAMSECURE simplifies the process of mastering complex security challenges through a comprehensive approach—creating solutions that leverage machine learning, hardware, and human supervision to prevent and deter rather than react and recover. 
• Sesami: A business intelligence platform that includes software, devices, and managed services, Sesami helps the leading financial institutions and consumer businesses address the rising costs of cash management. With 390,000 intelligent devices installed globally, Sesami sets the standard in intelligent cash management services, with 9 of the top 10 world retailers, 10 of the 10 largest North American banks, and 3 of the 5 largest European banks trusting Sesami. Tapping into an underpenetrated market with decades of growth ahead of it, Sesami has a highly recurring and low-capex subscription model, which naturally increases margins and cashflow conversion over time.

“In an increasingly complex world, I have discovered that prominent organizations aspire to partner with vetted entrepreneurial success stories. GardaWorld is more than one entrepreneur. It is a group of truly aligned, like-minded leaders committed to doing what is best for clients, employees, and stakeholders. I am humbled by the professionalism and dedication of my international group of colleagues and the unique DNA we have developed. This is what I call a winning team. We have come a long way since our modest beginnings when I started this company with a C$25,000-second mortgage on my home almost 30 years ago," said Stephan Crétier. “I thank BC Partners for their partnership and welcome HPS' expanded investment along with our group of minority investors to GardaWorld as we continue our winning journey. We are honored that such well-regarded, sophisticated global investors recognize our value as a performance-driven team by investing in our company.”

"GardaWorld has consistently generated compelling results as it executes on its commitment to delivering trusted and innovative security solutions, and we believe that its ability to evolve with the rapidly changing security needs of the world’s leading companies positions it well for continued success. We are excited to expand our longstanding partnership with the team as they continue to build on GardaWorld’s strong momentum and further accelerate its growth trajectory,” said Scot French, Governing Partner at HPS.

GardaWorld’s Board of Directors thanks BC Partners for their contribution as shareholders over the past five years. Since partnering with GardaWorld in 2019, the company has continued to deliver strong organic growth, doubling profitability to over C$1.0 billion in operating profit. This performance has contributed to an annual return on investment (IRR) of 30% since going private in 2012.

Paolo Notarnicola, Partner and Co-Head of Services at BC Partners, said, “Our partnership with GardaWorld is an excellent example of what we would consider a definitive ‘BC deal’, partnering with an impressive entrepreneur to help transform and grow a high-potential business in a defensive growth sector. Since partnering with GardaWorld in 2019, we have seen the company go from strength to strength, with operating profit more than doubling to over $1 billion. In addition, we have worked with management to create four global champions under one roof, with market leaderships in security services, AI-enabled security technologies, integrated risk management, and cash automation solutions. We are pleased with today’s announcement, which enables a visionary founder in Stephan to take control of the company, and we remain fully committed to the company’s future success as a minority investor.”

The transaction, which is subject to customary closing conditions, is expected to close by February 28, 2025. The transaction will be leverage neutral with respect to GardaWorld and will not involve any financing at the level of GardaWorld or its subsidiaries. Further financial terms of the transaction were not disclosed.

Simpson Thacher & Bartlett LLP and Langlois Lawyers LLP acted as legal counsel to GardaWorld, Stephan Crétier, and the senior management of GardaWorld. Stikeman Elliott LLP and Latham & Watkins LLP acted as legal counsel to HPS, and Kirkland Ellis LLP acted as legal counsel to BC Partners.