Danish Firm to Buy Wackenhut of U.S.

Danish security and rescue company Group 4 Falck said it would buy Wackenhut Corp., the largest security company in the U.S., for $573 million in cash to tap a growing market in the wake of the Sept. 11 attacks.

With the deal, Falck’s first entry into the $14-billion U.S. security market, the company would challenge its Nordic rival Securitas’ leading market position and could follow with more acquisitions.

Falck posted sales of $2.5billion in 2001, compared with Securitas’ $5.9 billion.

Securitas holds slightly less than 20% of the U.S. guarding market, after acquisitions of rival companies Pinkerton and Burns. Falck said Wackenhut is the second- largest provider of security services in the U.S., its sales of $1.1 billion corresponding to a market share of 7% to 8%.

Falck, the world’s second- biggest security firm, would pay $33 a share for Wackenhut, equal to a 14% premium to the combined Wackenhut A and B shares.

Wackenhut stock slipped 59 cents to $33.81 on the New York Stock Exchange. The shares have more than doubled since their Sept. 10 closing price of $16.70.