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ISS divests Commercial Security Business to Wilson Security

ISS divests Commercial Security Business to Wilson Security
January 9, 2014

ISS has signed a sale agreement with Wilson Security to acquire both the commercial security contracts of ISS Security in Australia and the First Security Business in New Zealand.

The ISS Security brand will continue in Australia, with a focus purely on security at major airports, which are part of the Aviation & Transport Division of ISS. ISS will remain the largest provider of Aviation Security services in Australia, with 900 trained and licensed officers providing services to 13 airports.

ISS is a global facility services company with a presence in 52 countries and a strong strategy built around a customer segment focus and provision of integrated service solutions. Integrated facility services solutions entails providing multiple services to the same customer, ensuring better value and consistent service levels. ISS continuously reviews the strategic rationale and fit of business units, leading to the identification and evaluation of non-core activities.

As a consequence, ISS in Australia & New Zealand reviewed all its activities and determined that the Commercial Security business was not core to the strategy and did not give as much ability to leverage the strength of ISS. This divestment will result in a stronger business platform for ISS.

The overall ISS business in Australia and New Zealand is healthy in the face of increased industry pressure on prices. The last 12 months have seen record new sales in the resources, health and aviation sectors, which will continue to be a strong target as an area where ISS can offer integrated solutions.

ISS Australia & New Zealand Chief Executive Dane Hudson explained "this is good news for our business, allowing us to focus on our strategy and our Vision of being the 'world's greatest service organisation'.

"The divestment gives us a more solid platform to further develop our integrated service offer.

"This sale will make Wilson Security the largest provider of guarding services across Australia and New Zealand. Security is their core business and they have developed a market leading position, so we felt it was a good match. The offer came at a time when we had a renewed focus on our global strategy, and we felt it was a great opportunity for the business.

"We are convinced that the security business will continue to thrive under Wilson's leadership and their reputation gave us re-assurance that our existing customers would be well looked after."

The transaction is subject to approval from relevant local authorities and is expected to close before the end of March. The proceeds from the divestment will contribute to the continued deleverage of ISS by repaying outstanding debt.

Following the transaction Wilson Security will become the preferred security partner for ISS in Australia and New Zealand. The ISS Commercial Security business in 2012 employed 1,300 people in Australia, delivering security services at over 2,500 locations. First Security in New Zealand is the largest provider of security services in the country, employing 1,100 guards.

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