Andrews International - Experts & Thought Leaders

Allied Universal, a security and facility services company, finalises its acquisition of U.S. Security Associates (USSA), further building on its position in the security services industry. This acquisition includes Andrews International (including its Government Services Division and Consulting and Investigations and International Division) and Staff Pro. As a result of the acquisition, Allied Universal is now an organisation with approximate annual revenues of $7 billion and over 200,000 security professionals. The acquisition also increases Allied Universal’s national presence and customer service capabilities and enhances Allied Universal’s presence in Canada. It also expands its footprint to Central and Latin America and the United Kingdom. With this acquisition, Allied Universal enters the consulting and investigations business as well as event staffing, enhancing its unparalleled and comprehensive security offerings to its customer base throughout its service areas. Domestic operations “I look forward to working with the USSA team, which has evolved over the years as a leader in security. Together we will bring unprecedented value to all of our customers with an array of combined offerings and concepts,” said Steve Jones, Chief Executive Officer of Allied Universal. Richard Wyckoff, who previously served as President and Chief Executive Officer of USSA, will act as a consultant during the integration process. Transition of U.S. Security Associates’ domestic operations is expected to be completed by the second quarter of 2019.

Allied Universal, global security and facility services company, announced that it has reached an agreement to acquire U.S. Security Associates (USSA) from Goldman Sachs Merchant Banking Division (GSMBD), further building on its position as a major global player in the security services industry. This transaction includes the acquisition of Andrews International, the global arm of USSA. USSA has operations in the United States and internationally, with revenues in excess of $1.5 billion and more than 50,000 employees Allied Universal takes over USSA Based in Roswell, Georgia, USSA has operations in the United States and internationally, with revenues in excess of $1.5 billion and more than 50,000 employees. This acquisition is expected to increase Allied Universal’s national presence and customer service capabilities and will also enhance Allied Universal’s presence in Canada, as well as expand its footprint to Central America and the United Kingdom. USSA also provides Allied Universal with a sizable consulting and investigative division and event staffing business, StaffPro. The combined organisation will provide unparalleled and comprehensive security solutions to its customer base around the globe. “I am excited to welcome the USSA team to the Allied Universal family,” said Steve Jones, Chief Executive Officer of Allied Universal. “USSA has evolved into one of the leaders in the security industry over the years and provides a unique suite of security solutions to a wide array of clients across industry verticals. This transaction aligns with our long-term growth strategy of acquiring scalable businesses with significant potential when combined with the Allied Universal platform. I look forward to collaborating with the USSA team to maximize the value that together we will bring to our customers and in identifying new ideas in the security space,” said Jones. Allied-USSA business integration The transaction further bolsters Allied Universal’s position as a leading provider of security officer services" Richard Wyckoff, President and Chief Executive Officer of USSA, praised his team and embraces the partnership. “This merger with Allied Universal is a testament to the hard work and dedication of the men and women of USSA. We have focused on world-class customer service by providing innovative manpower and technological solutions to our clients. The industry has taken notice. I am very proud of what our team has accomplished and very excited that integrating our business with another industry leader will mean more growth opportunities and career advancement potential for our associates,” said Wyckoff. “This transaction further bolsters Allied Universal’s position as a leading provider of security officer services. We have been proud to support the Allied Universal team as they have grown the business organically and through strategic and transformative acquisitions such as this one,” said Chandler Joel Reedy, Managing Director of Warburg Pincus, a principal shareholder of Allied Universal. “We are excited to combine USSA with Allied Universal, which has a large and diverse portfolio of customers both in the U.S and internationally. Allied Universal will be exceptionally well positioned to continue to deliver unmatched service to its thousands of clients.” As one of the two principal shareholders of Allied Universal, Wendel is supporting the company’s continued growth as the industry continues to evolve" Wendel North America Wendel North America CEO David Darmon said, “As one of the two principal shareholders of Allied Universal, Wendel is supporting the company’s continued growth as the industry continues to evolve. This is consistent with our original investment thesis and we think will further enhance the company’s leadership position.” The transaction is expected to close by late third quarter of 2018, subject to customary regulatory approvals. Financial advisors to Allied Universal for the transaction included Barclays, Citi, Credit Suisse, Deutsche Bank, HSBC, Moelis, Morgan Stanley and Societe Generale. Cleary Gottlieb Steen & Hamilton LLP provided legal counsel to Allied Universal. Financial advisors to U.S. Security Associates included Goldman Sachs and KeyBank. Fried, Frank, Harris, Shriver & Jacobson LLP provided legal counsel to U.S. Security Associates. Terms of the deal were not disclosed.

Page worked closely with USMCOC President and CEO General Al Zapanta to secure AI’s membership The security company, Andrews International (AI), an affiliate of U.S. Security Associates (USA), announces it has joined the United States-Mexico Chamber of Commerce (USMCOC) as a Binational Member, the highest level of membership. In conjunction with the membership, Senior Vice President of Andrews International’s Consulting, Investigations, & International (CI&I) division, D.C. Page, has been appointed as a member of the United States-Mexico Chamber of Commerce Binational Board. Strategic leadership and oversight of the CI&I division USA, and its affiliate AI, is a multinational, privately owned security company providing full service security, consulting, and investigations expertise. USA, along with AI and affiliates, conduct operations in both Mexico and the United States. Page is responsible for strategic leadership and oversight of the CI&I division and is active in many security and intelligence-related organisations, including ASIS International, the Overseas Security Advisory Council, and ICC FraudNet. In the last four decades, the USMCOC has established itself as the leading binational, non-profit, business organisation working to secure mutual trade and investment relationships between the United States and Mexico. The USMCOC board of directors is made up of local executives from a variety of industries and represent the 18 regional chapters located across the United States and Mexico. Page worked closely with USMCOC President and CEO General Al Zapanta to secure AI’s membership. General Zapanta is currently responsible for the operations of the regional chapters both in the United States and in Mexico. Over the last 40 years, General Zapanta has held many Presidential appointments and has served in an advisory capacity on matters relating to trade operations, conservation and development. Page explained that AI has “established sizable operations on both sides of the border,” and that he “is looking forward to this new cross-border relationship for Andrews International and to working with USMCOC and the other members of the board.”

Consolidation persisted in the physical security industry in 2018, and big companies such as Motorola, Canon and UTC continued to make moves. Also among the mergers and acquisitions (M&A) news in 2018 was a high-profile bankruptcy (that ended well), continuing consolidation in the integrator market, and the creation of a new entity called “LenelS2.” Here’s a look at the Top 10 M&A stories in 2018: 1. Motorola acquires Avigilon Motorola Solutions announced in February that it had entered into a definitive agreement to acquire video surveillance provider Avigilon in an all-cash transaction that enhances Motorola Solutions’ portfolio of mission-critical communications technologies. Avigilon products are used by a range of commercial and government customers including critical infrastructure, airports, government facilities, public venues, healthcare centers and retail. The company holds more than 750 U.S. and international patents. 2. UTC Climate, Control & Security buys S2 Security UTC Climate, Controls & Security agreed in September to acquire S2 Security, a developer of unified security and video management solutions. UTC subsequently combined S2 with its Lenel brand to create LenelS2, “a global leader in advanced access control systems and services” with “complementary strengths.” 3. Costar Technologies acquires Arecont Vision after bankruptcy Arecont Vision, the provider of IP-based megapixel camera and video surveillance solutions, announced in July that the acquisition by Costar Technologies, Inc. of its assets had been approved by the bankruptcy court. After the closing of the sale, the company began operating as Arecont Vision Costar, LLC and is part of Costar, a U.S. corporation that designs, develops, manufactures, and distributes a range of products for the video surveillance and machine vision markets. 4. Allegion acquires access control company ISONAS Allegion plc, a security products and solutions provider, agreed in June to acquire ISONAS through one of its subsidiaries. ISONAS’ edge-computing technology provides access control solutions for non-residential markets. ISONAS' devices – like its integrated reader-controllers – utilise power over ethernet, making them easy to install and cost effective as they utilise existing customer infrastructures. The company is based in Boulder, Colo. 5. HID buys Crossmatch for Biometrics HID Global announced that it had acquired Crossmatch, a provider of biometric identity management and secure authentication solutions, from Francisco Partners. Crossmatch’s portfolio of products includes biometric identity management hardware and software that complement HID’s broad portfolio of trusted identity products and services. 6. BriefCam announces acquisition by Canon BriefCam, a global provider of video synopsis and deep learning solutions, announced its acquisition in May by Canon Inc., a global digital imaging solutions company. The addition of BriefCam to Canon’s network video solutions products portfolio complements the Canon Group’s previous acquisitions of Axis Communications and Milestone Systems. 7. Allied Universal acquires U.S. Security Associates Allied Universal, a security and facility services company, finalised its acquisition of U.S. Security Associates (USSA) in October, further building on its position in the security services industry. This acquisition includes Andrews International (including its Government Services Division and Consulting and Investigations and International Division) and Staff Pro. 8. Johnson Controls acquires Smartvue Corp. Johnson Controls announced in April that it had acquired Smartvue, a global IoT and video provider that empowers cloud video surveillance and IoT video services. The addition of the Smartvue cloud-based video platform will enhance Johnson Controls’ offering of an end-to-end, smart cloud-based solution that can provide superior business data and intelligence to customers and added value to partners. 9. ADT acquires Red Hawk Fire & Security (and others) ADT Inc.’s acquisition of Red Hawk Fire & Security, Boca Raton, Fla., was the latest move in ADT Commercial’s strategy to buy up security integrator firms around the country and grow their footprint. In addition to the Red Hawk acquisition, announced in mid-October, ADT has acquired more than a half-dozen security system integration firms in the last year or so. 10. Convergint Technologies continues to acquire Convergint Technologies announced in August the acquisition of New Jersey-based Access Control Technologies (ACT), bringing further electronic security systems experience to Convergint's service capabilities. Convergint has strategically grown its service footprint across the United States, Canada, Europe and Asia Pacific through strong organic growth and the completion of 18 acquisitions since early 2016. And it continues: Convergint announced acquisition of SI Technologies, Albany, N.Y., in November and Firstline Security Integration (FSI), Anaheim, Calif., in December. (And Convergint itself was acquired in February by private equity group Ares Management.)

Today, the once crime-ridden area of Los Angeles is a flourishing shopping and tourist mecca Los Angeles struggled with a rising crime rate. Constant crime plagued the historic area with its well-known tourist attractions, which include TCL Chinese Theatre and the Walk of Fame. Criminal activity ranged from major to minor, from felonies to prostitution, public drunkenness, trespassing, vandalism, theft and on and on. Time and budget constraints had forced local police officers into a reactive enforcement mode — the police had their hands full with major crimes and had no time to deal with soft crime. The crime-ridden environment was ruining the quality of life and hurting businesses in the historic Hollywood community. In 1996, property owners along several blocks of Hollywood Boulevard formed and funded the Hollywood Entertainment District Business Improvement District (BID). “The BID retained a private security firm to police soft crime because the police were completely preoccupied with major crimes,” says Bill Farrar, senior vice president of media and special events and special armed services with Los Angeles-based security firm of Andrews International, LLC. Farrar has directed Andrews International’s efforts to police soft crime in the BID since 2005. When the program began in the late 1990s, the original security firm hired retired and off-duty police officers, armed them and sent them out on foot patrols from dawn to dusk. The officers made citizens arrests for soft crimes, wrote up police reports and delivered the suspects to the Hollywood Area Police Station. The program proved successful as private property developers began to return to Hollywood Boulevard. The program’s success led the Hollywood Entertainment District to expand the BID to cover an 18-block stretch of Hollywood Boulevard in 1999. In 2005, the BID put its security contract up for review and decided to go with a new provider — Andrews International. “The BID thought the previous provider was doing a good job but wanted to move up to the next level with a ‘broken windows’ policing program,” Farrar says. (The broken windows theory of criminology holds that monitoring urban environments to prevent small crimes, such as vandalism, helps to prevent more serious crimes.) In addition, the Sunset and Vine BID joined the Hollywood Entertainment BID in 2007, with the goal of bringing the successful program to its communities. The two BIDs have grown steadily over the years. Today, their combined security budget totals $2.3 million dollars annually. Those dollars enable Andrews International to patrol an area spanning eight square miles. Andrews International calls its program CAPS, short for Community Assisted Problem Solving.  Policing soft crime Andrews International calls its program CAPS, short for Community Assisted Problem Solving. In 2007, CAPS first year, the program made 2,500 arrests. “About 95 percent of these arrests involved quality of life crimes,” says Farrar. “When we see felonies, we call the police and act as backup for them.” That procedure also netted a potentially dangerous homicide suspect in 2007. On March 22, a concerned citizen reported seeing a vehicle driven by Ralph Garbarini, a suspected murderer, who had just been featured on the FOX television program “America’s Most Wanted.” When she spotted the vehicle parked outside her house, she called CAPS headquarters. “We ask that people call the police about major crimes, but they know us and trust us, and so they often call us,” says Farrar. “We called the police and placed the truck under surveillance until they arrived. When the suspect returned to the vehicle, the police made the arrest. In 2008, the second year of the CAPS program, arrests plummeted to 1,707, illustrating the effectiveness of the program. Arrests have continued to decline. Last year, arrests topped out at 1,100.”  Community Assisted Problem Solving While enforcement is often necessary, CAPS officers do not focus on enforcement. Instead, the CAPS program emphasises problem solving, bridge building with communities and social responsibility. “We tell our officers to become part of the community,” Farrar says. “It isn’t necessary to live in the community — though some do — they must work to become part of it by getting to know people and making friends with them. “Our officers drank that Kool-Aid and started making their own. One day, our guys came across a homeless man. He was dirty, passed out and smelled of alcohol. The officers discovered that the man was a veteran. They cleaned him up and called the Veterans Administration, which took him to a VA hospital.” Encounters such as this have guided CAPS officers’ problem solving efforts. Instead of arresting homeless people, they take them to shelters, get them back on medication and help them to find jobs. Instead of arresting homeless people, they take them to shelters, get them back on medication and help them to find jobs. “We do this kind of homeless outreach every day,” says Farrar. Over nine years, they have placed more than 300 homeless people in permanent supportive housing. After realising that 60 percent of the program’s arrests involve public drunkenness, CAPS officers have shifted gears. “We’re trying a new response,” Farrar says. “Instead of arresting them, we are referring them to Alcoholics Anonymous.” That idea has become a general part of CAPS efforts. One of the written duties of officers in the program is to “assist outreach providers in connecting with people who need placement and resources.” Outreach providers include those providing aid to people with alcohol problems, drug problems, emotional problems and homeless problems. These efforts — as well as the enforcement work — have created a lasting and close relationship with the communities in the programs eight square mile territory. It is something that both the community and the CAPS officers value. “Private security can help to change communities like this,” says Farrar. “And our work in Hollywood is probably the most meaningful work that any of us have ever done.”