Allied Universal plans new debt for U.S. Security Associates purchase

By Sara Rosenberg

New York, July 16 – Allied Universal intends to use additional debt and up to $200 million of equity from existing shareholders to fund its acquisition of U.S. Security Associates for about $1 billion, according to a news release.

Pro forma for the transaction, Allied Universal will generate combined revenues of $7 billion, and including anticipated synergies, the company’s leverage ratio is expected to improve to below 6.5 times.

Closing is expected by the end of the year, subject to customary regulatory approvals.

Allied Universal is a Santa Ana, Calif.-based contract security services company. U.S. Security is a Roswell, Ga.-based provider of security and related services.

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