American Fire Protection Group, Inc. (AFPG) is powered by APi Group, a multi-billion dollar company that has been a globally renowned player in the Construction and Life Safety industry, since 1926. APi Group operates over 200 locations in North America and continues to grow.
APi Group
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APi Group is making four acquisitions worth US$ 300 million that will extend its reach in both the U.S. and Europe
APi Group is making four acquisitions worth US$ 300 million that will extend its reach in both the U.S. and Europe. The largest purchase is the SK FireSafety Group, a Netherlands-based company that provides fire and life safety services to a variety of industries in northern Europe. New Brighton-based APi Group provides safety, specialty and industrial services through 40 different businesses that have more than 200 locations, mostly in North America.
Takeover of SK FireSafety Group
The acquisition of SK FireSafety adds a complementary business to APi Group’s portfolio and establishes an operational base for further expansion in Europe. Since 2011, SK FireSafety has made 25 acquisitions of its own to build its presence in the Northern and Western Europe region.
“These acquisitions help expand our geographical reach in the important U.S. market and establish a beach head for expansion on the continent in Europe,” said APi Group's President and Chief Executive Officer (CEO), Russ Becker, in a news release.
SK FireSafety Group operates in Belgium, Luxembourg, the Netherlands, Norway and Sweden. It has annual revenue of approx. US$ 146 million and has around 650 employees. The company had been owned by a Paris-based private-equity group, APAX Partners, since 2014.
Multiple safety-services companies acquired
The three other companies being acquired are two safety-service companies, in the US States of Georgia and Massachusetts, and a specialty-services company in Wisconsin. Names of those companies were not disclosed, and those three deals are expected to close by the end of the year.
The four new companies have healthy profit margins and combined are expected to contribute nearly US$ 200 million to APi's annual revenue in 2021, as per APi Group statement said. Analysts covering APi Group expect the company to reach annual revenue of US$ 3.5 billion this year.
Global expansion
APi Group was acquired by a ‘blank check’ investment company for an estimated total deal valuing US$ 2.9 billion
APi Group was acquired last year by a ‘blank check’ investment company for an estimated total deal valuing approx. US$ 2.9 billion and in April 2020, the company’s shares started trading on the New York Stock Exchange.
The deal gave the company more ability to make acquisitions and in an investor presentation, that took place earlier this summer, APi Group said it would seek opportunistic investments that added to its bottom line. The company said in its news release that it is paying for its recent acquisitions with available cash on hand and indicated more deals are likely.
Incremental M&A opportunities
“Our pipeline of incremental M&A (Mergers & Acquisitions) opportunities is robust, and we expect to continue to explore opportunistic acquisitions as we move through the balance of the year and into 2021,” APi Group President and CEO, Russ Becker said.
The company said it would discuss its acquisitions in more detail during the third quarter earnings conference call scheduled for Nov 11, 2020. APi Group is a multi-billion-dollar parent company to more than 40 independently managed companies that specialize in safety solutions, specialty services, and industrial solutions in over 200 locations worldwide.