J2 Acquisition invests $2.9 billion to acquire APi Group, Inc

J2 Acquisition Limited, said that the company believes APi to be the ideal base for J2’s preliminary investment and is in line with its disciplined investment criteria. 

J2 Acquisition Limited, a public acquisition company, recently announced that it has inked a definitive agreement to acquire APi Group, Inc., a leading provider of industrial specialty services and commercial life safety solutions, for a sum of $2.9 billion. Moreover, J2 plans to list its shares under the symbol APG on the New York Stock Exchange and switch its jurisdiction of incorporation to Delaware.

According to reports, APi is one of the best specialty contractors in the country with a robust contracted service offering, diversified blue chip customer base, and a successful track record of acquisitions. The firm manages more than 40 regionally and nationally important businesses with leading brands in over 200 sites and produces over 95% of its revenue from North America, mainly from the United States.

The company has managed to record strong and consistent financial results over the year and anticipates generating an estimated revenue of $4 billion and 10% adjusted EBITDA margins for the F.Y. 2019.

Reportedly, APi offers the acquisition company a perfect foundation of market leadership on which it could build a sensible strategy that highlights organic growth, along with opportunistic and strategic M&A. Evidently, the founders of J2 have years of experience in growing, investing and operating multiple businesses through a similar strategy built around disciplined acquisitions in industries and niche markets, and organic growth, as well as on creating winning cultures.

For the record, APi, which employs 15,000 people, has a state-of-the-art employee development program and, J2 intends to build on the company’s operating strengths with an eye on developing the service portion of business across its portfolio after the acquisition.

Speaking on the announcement, Sir Martin E. Franklin, co-founder, J2 Acquisition Limited, said that the company believes APi to be the ideal base for J2’s preliminary investment and is in line with its disciplined investment criteria.

He added that this acquisition fulfills the company’s long-established acquisition criteria with substantial capability for long- and short-term value creation for their shareholders.

Source Credit: http://www.j2acquisitionlimited.com/~/media/Files/J/J2-Acquisitions/documents/press-releases/pr-announcing-acquisition-of-target.pdf