Allied Universal

Allied Universal is an American provider of security systems and services; janitorial services; and staffing. The company was formed in 2016 by the merger of Santa Ana, California-based security and janitorial services company Universal Services of America, and Conshohocken, Pennsylvania-based security firm AlliedBarton Security Services.[4] The combined company is reportedly the largest provider of security guards in the United States, with 140,000 trained officers between the two companies at the time of the merger.[4][5]

Allied Universal
TypePrivate
IndustrySecurity, Security Systems, Janitorial, Event Staffing, Surveillance, Security Technology
Founded2016 (Merger of AlliedBarton and Universal Services of America)
HeadquartersSanta Ana, California, USA
Area served
United States, Canada, United Kingdom, Mexico, Honduras, Nicaragua[1]
Key people
Steve Jones, (Chairman and CEO)[2]
Revenue$8.5 billion
Number of employees
Over 250,000 (January 2021)[3]
Websitewww.aus.com

In December 2020, Allied Universal extended a $5.1 Billion takeover offer for British security firm G4S, which if successful, would create a combined company reportedly employing more than 750,000 people globally with revenues of more than $18 Billion USD.[6]

The company is headquartered in Santa Ana, California.[4]

History

AlliedBarton, one of the companies that merged to become Allied Universal, was founded as Allied Security in 1957 in Pittsburgh, Pennsylvania as a provider of contracted security guards and related services.[7]

In 2000, Philadelphia, Pennsylvania-based, Spectaguard acquired Allied Security and took on the Allied Security name. The new company was the fourth largest security company in the United States.[8]

In 2004, Allied Security acquired Malden, Massachusetts-based Security Systems Inc. (SSI) and Atlanta, Georgia-based Barton Protective Services to form AlliedBarton Security Services - creating the largest American-owned contract security services company in the United States.[9]

In 2006, AlliedBarton acquired San Antonio, Texas-based manned guarding firm Initial Security for $73.6 million.[10]

In 2008, New York City-based investment group The Blackstone Group acquired AlliedBarton, for an undisclosed amount.[11]

In February 2015, a former employee of Universal Protection Service filed an arbitration claim alleging that Universal Protection Service failed to pay overtime wages for all hours worked as well as minimum wage. Stone also asserted claims of additional wage violations including meal period and rest period violations. It was alleged that the illegal business practices violated California and federal wage law. The company denied the allegations, but entered into a $30 million settlement to avoid the cost of litigation. The settlement was granted preliminary approval on November 22, 2017.[12] In July, Paris, France-based private investment firm Wendel acquired AlliedBarton from The Blackstone Group for US$1.67 billion.[13]

In 2016, AlliedBarton and Universal Services of America merged to form Allied Universal. In February 2017, the company officially began operations under its new name. After the merger, Allied Universal was considered the largest security company in North America.[14]

In January 2018, the company paid $90,000 to settle a religious discrimination lawsuit from a Muslim employee in California who sought a religious exemption to the company’s grooming standards and was fired.[15] Also in 2018, the radio program This American Life ran an hour-long feature story about widespread sexual harassment and racism at Allied and the company's lack of response to it.[16] In response to the allegations, the company issued a statement saying these “isolated incidents are not indicative of our culture and work ethic,” and it has “zero tolerance against sexual harassment.” A related case was later voluntarily dismissed at the plaintiffs’ request.[15] In July, Allied Universal announced the purchase of Georgia-based US Security Associates along with its affiliate Staff Pro for $1.5 billion.[17]

In 2019, the company was attacked with a ransomware scheme by the Maze group that turned out to be a stunt designed to warn companies about system security flaws.[18] In December, majority owner Wendel sold most of its stake in Allied Universal to Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), and a new investment group led by investment company Warburg Pincus and an affiliate of the investment company J. Safra Group.[19]

In December 2020, the Board of Directors and Shareholders for British security firm G4S unanimously accepted a takeover offer of $5.1 Billion USD from Allied Universal. The combined companies would reportedly employ more than 750,000 people globally with combined revenue of more than $18 Billion USD.[6]

Services

Allied Universal provides security products and services, including access control, intrusion, alarm detection, and IP-based video systems; janitorial; transition planning; green cleaning; and staffing services.[20]

The company's divisions are Allied Universal Security Services; Allied Universal Technology Services; Allied Universal Risk Advisory and Consulting Services; and Allied Universal Event Services.[14]

Operations

Allied Universal operates in North America, the United Kingdom, Honduras and Nicaragua.[1] The company maintains its headquarters in Santa Ana, California.[4] As of December 2019, it employed over 230,000 people.[3] As of January 2021, Steve Jones was the company's Chairman and CEO.[2]

References
  1. "Mark Mullison, CIO at Allied Universal Discusses Artificial Intelligence, Cyber Security, and the Launch of HELIAUS". Business World IT. June 20, 2019. Retrieved January 18, 2021.
  2. "Steve Jones Chairman/CEO". Bloomberg. Retrieved January 18, 2021.
  3. "Allied Universal Buys 4th Company in Month". OCBJ. December 2, 2019. Retrieved January 18, 2021.
  4. "How the nation's largest security-guard firm adapts to changing threats". LA Times. August 4, 2016. Retrieved January 18, 2021.
  5. "Universal Services to Merge". OCBJ. May 3, 2016. Retrieved January 18, 2021.
  6. "G4S agrees to be acquired by Allied Universal". Security Systems News. December 8, 2020. Retrieved January 19, 2021.
  7. Bray, Chad (June 30, 2015). "Wendel Agrees to Acquire AlliedBarton Security for $1.67 Billion". The New York Times. ISSN 0362-4331. Retrieved January 18, 2021.
  8. "COMPANY NEWS; SPECTAGUARD SAYS IT HAS ACQUIRED ALLIED SECURITY". The New York Times. March 3, 2000. ISSN 0362-4331. Retrieved January 19, 2021.
  9. "Allied Security to acquire Barton Protective Services - Atlanta Business Chronicle". Atlanta Business Chronicle. May 24, 2004. Retrieved January 18, 2021.
  10. "AlliedBarton to buy Initial | Security Systems News". Securitysystemsnews.com. August 1, 2001. Retrieved January 18, 2019.
  11. "Blackstone Nabs AlliedBarton". The New York Times. July 28, 2008. Retrieved January 18, 2021.
  12. "ILYM Group". Upssettlement.com. Retrieved January 2, 2019.
  13. "French firm buys another Phila. co.: $670M+debt for AlliedBarton". Philadephia Inquirer. July 1, 2015. Retrieved January 19, 2021.
  14. Cosgrove, Anne (August 1, 2016). "New Allied Universal Formed, Offers Security Services". Facility Executive - Creating Intelligent Buildings. Retrieved February 1, 2017.
  15. "Durham City Council Approves Contract With Company Accused of Harassment, Discrimination". Indy Week. May 18, 2018. Retrieved January 19, 2021.
  16. "LaDonna". This American Life. May 18, 2018. Retrieved January 18, 2021.
  17. "Allied Universal to buy U.S. Security Associates for $1 billion". Reuters. July 15, 2018. Retrieved January 19, 2021.
  18. "Maze ransomware shuts down with bizarre announcement". Computer Weekly. November 2, 2020. Retrieved January 19, 2021.
  19. "Allied Universal Holder Completes Sale". OCBJ. December 16, 2019. Retrieved January 18, 2021.
  20. "Allied Universal Security Services LLC". Bloomberg. Retrieved January 19, 2021.
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