Granville Baird backs security MBO

The European mid-market private equity firm has backed a $40m management buyout at the UK security business of US group ArmorGroup International.

Granville Baird Capital Partners (GBCP), the European mid-market private equity house, has backed a management buyout of ArmorGroup International, a UK supplier of security services. The business is being bought from its US-based parent, Armor Holdings, a manufacturer of security products listed on the New York Stock Exchange.


Granville Baird has invested $15.25m (£9.1m) in the $40.25m transaction, backing a management team led by Jerome Hoffman, chief executive officer of ArmorGroup. Senior debt was provided by Barclays.


According to a company statement, the deal was sourced though GBCP’s network. In order to secure exclusivity, GBCP achieved investment committee approval within two weeks of the introduction. GBCP then completed the deal eight weeks after signing heads with the vendor.


ArmorGroup, which has operations in 38 countries, provides services that include the long-term guarding of people and assets on behalf of government departments and contractors as well as multinational corporations in high-risk situations. It also provides training in vehicle and weapon handling, as well as carrying out land mine clearance projects. The company’s revenues are set to exceed $100m in 2003.


“We were impressed by ArmorGroup’s strong management team with whom we have already begun to work closely on a number of key issues,” said Simon Havers, a director at Granville Baird Capital Partners. “The company shows strong potential for growth and profitability due to the barriers to entry afforded by its skills, reputation and scale.”


Granville Baird Capital Partners typically invests between £5m and £15m of funding in companies with a value of between £10m and £150m in business services, technology, healthcare and industrial products and services sectors.