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Garda World taken private for $1.1 bln, posts increased Q2 earnings

Published: 03:33 08 Sep 2012 AEST

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Garda World Security (TSE:GW), Canada's biggest security and cash-handling firm, Friday said a consortium formed by CEO Stephan Cretier has offered to buy it for $1.1 billion in cash.

The consortium will acquire each Class A share of Garda for $12.00, representing a premium of 30 per cent to Thursday's closing price of $9.20.

The board of Garda has recommendeded that shareholders vote in favour of the transaction.

Separately, Garda posted an increase in second-quarter earnings.

For the quarter ended July 31, the security company posted earnings of $4.9 million or $0.15 per share, up from $3.8 million or $0.12 per share. Revenue increased of 13.7 per cent to $337 million form $297 million last year.

Analysts were expecting a profit of 15 cents on reveue of $313 million.

"These second quarter results are exceptionally strong and our platforms delivered the growth we expected," said Garda's president and CEO Stephan Cretier. 

"We capitalized on the opportunities that we created and continued to build the capacity that will drive our future growth. In Cash Logistics, the integration of new clients within our footprint generated increased revenues of 12.7% over last year and created strong synergies and operational efficiencies. 

"In Security Solutions, emerging markets performed exceptionally well with increased revenues of 81.8% over last year as a result of the high volume of growth in the Oil and Gas industry in the Middle East and the development of the diplomatic sector in Afghanistan."

Garda is a global provider of security and cash logistics solutions. With headquarters in Montreal, Canada, the firm's 45,000 dedicated professionals serve clients in countries throughout North America, Europe, Latin America, Africa, Asia and the Middle East.

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