E
F
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G4S plc
The Manor
Manor Royal
Crawley
West Sussex
RH10 9UN
Tel: +44 (0) 20 8770 7000
or +44 (0) 20 8722 2000
Email: enquiries@g4s.com
In 2004, G4S was formed through the merger of Group 4 Falck and UK based Securicor, both global security companies. In May 2004, the UK facilities management division of Group 4 Falck, Global Solutions Ltd, was sold to Englefield Capital, in partnership with Cognetas LLP and Electra Partners Europe. Global Solutions Ltd (GSL), was a leading provider of outsourced services to public authorities and operators within the growing PFI and PPP outsourcing market, in the UK and internationally (Englefield Capital, 2008). By 2004, GSL had contracts with the public sector in custodial services, covering prison management, escorting of prisoners, immigration services, custody and training; and other public services in health care, education and local government. The company has continued to expand into the public sector.
In July 2008, G4S bought GSL from Englefield Capital / Europa Electra Partners. G4S now provides “medical service solutions for the public and private sector” in the UK and emergency ambulance services and ‘specialist guarding to secure hospitals’ in Australia (G4S, 2007). This acquisition supports the G4S 2004-2007 corporate strategy, in which G4S aimed to expand further into the UK, USA, Benelux countries and Scandinavia (G4S, 2004). In the 2008 G4S strategy (for Asia-Pacific), priority sectors were listed as health, local government, ports/airports as well as Benelux becoming a priority country for expansion (G4S, 2008).
Table 3: G4S services in the UK
Service |
Activities |
NHS
|
Medical recruitment Non-emergency transport Medico-legal reporting LIFT (Local Financial |
Childrens’ Services |
3 purpose-built secure centres run for the Youth Justice Board A specially designed residential children’s home, for young people with emotional and behavioural difficulties Secure transportation and escorting services for young people Training courses |
Immigration |
In country escorting Immigration detention and removal centres |
Police
|
Support services, including services related to detainees, - processes, charging, fingerprinting, transporting, drug testing, statement taking, case preparation, management of forensic samples, other administrative tasks. |
Facilities Management |
Public and private sector |
PFI/ PPP |
Special purpose vehicle management LIFT Primary Care |
Table 4: G4S Finance
|
2007 |
2006 |
Revenues |
4,496.4 million |
4,036.8 million |
Profit before tax |
309.1 |
271.6 |
Total liabilities |
(2,552.8) |
(2,203.7) million |
Total staff costs |
3,257.7 |
3,108.3 |
Table 5: Number of G4S employees
|
2007 |
2006 |
Security services |
466,035 |
403, 079 |
Cash services |
41, 255 |
36,866 |
Administration |
190 |
183 |
Total |
507,480 |
440,128 |
Table 6: Geographical distribution of G4S employees
Region |
2007 |
2008 |
Europe |
115,951 |
114,216 |
North America |
53, 414 |
51,919 |
New markets |
337,928 |
273,810 |
Not allocated ( head office) |
190 |
183 |
There are historical links between G4S and Falck, which are important in understanding the current relationship between these two companies. Both are still significant providers of security services, although Falck has a wider range of health care services. Since the acquisition of GSL, in 2008, G4S has also expanded its health care activities.
Table 7: Falck and G4S - changes in ownership between 1988-2009
Year |
Falck |
Group 4 Group / Securitas/ Securicor |
1980s |
1988 Falck family sold Falck to Baltica, a Danish insurance company
|
1981 Jørgen Philip-Sørensen took responsibility for the European activities in the Group 4 Group Securicor – UK based part of company His brother, Sven Philip-Sørensen, carried on the Swedish activities (Securitas AB) |
|
|
1989 Securicor established a custodial services division |
1991 |
Baltica sold 55% of its shares in Falck |
Group 4 won the contract to run the first UK privatised prison HMP Wolds |
1993 |
Falck acquired Danish company ISS Securitas to form Falck Securitas |
|
2000 |
Group 4 Securitas (International) B.V. and Falck A/S merged to form Group 4 Falck |
UK based Securicor continued global expansion as separate company |
2001 |
Group 4 Falck acquired several security businesses in Europe |
|
2002 |
Group 4 Falck A/S bought Wackenhut Corporation Group 4 Falck sets up a rescue and safety operation in a new division |
|
2003 |
|
|
2004 |
After Group 4 Falck merged with UK based Securicor, Falck was then separated from Group 4 and was listed independently on the Copenhagen Stock exchange.
|
Group 4 Falck merged with UK based Securicor Group 4 Falck's UK Facilities Management Division sold to Englefield Capital/ Europe Electra Partners and renamed Global Solutions Ltd (GSL) Rebranded as G4S |
2005 |
Falck bought by Nordic Capital and delisted from the Copenhagen Stock Exchange. |
GSL expansion |
2006 |
Expansion into Estonia, Finland, Belgium, Slovakia, Brazil, Trinidad/Tobago, and Spain |
|
2007 |
||
2008 |
GSL sold to G4S |
|
2009 |
|
G4S |
Source: G4S Annual Report, Falck Annual Report, http://www.corporatewatch.org.uk/?lid=337