Garda World Security purchases Aeroguard
Oct. 18, 2011, Montreal - Garda World Security Corp. said Tuesday it has acquired Aeroguard, a pre-board screening services provider, paying $16 million in cash and shares.
The transaction, which was completed through a subsidiary of the company, is comprised of $12 million cash at closing, an additional 250,000 shares and $1 million of sales payable within 18 months.
In August, Aeroguard signed a five-year contract with the Canadian Air Transport Security Authority to provide screening services in the Prairies at various locations.
Through the contract, Aeroguard will be responsible for screening at the region's three biggest airports in Calgary, Winnipeg and Edmonton starting on Nov. 1.
The contract is estimated to be worth $421 million in revenues, and can be extended to 2022, making it worth twice as much.
Garda World said its knowledge in the Prairies region will benefit the acquisition.
"Our experience in the most important airports of Canada, including Calgary and Edmonton — the two largest in the Prairies region, gives us a unique in-depth knowledge of the operations,'' said Chantal Baril, vice president of aviation security solutions.
"We are also delighted to welcome 1,200 skilled professionals to our team as they will contribute in our efforts to achieve, sustain and continually enhance our services levels.''
Garda said it expects the purchase to be positive to its earnings starting in the fourth quarter, and is boosting its outlook for 2012 to $145 million of operating profit on the back of the acquisition and strong results in August.