APi Group Corporation Announces the Acquisition of SK FireSafety Group

-The Company Announces Three Additional Planned Acquisitions-

-Acquisitions Support Growth and Geographic Expansion in its Safety Services and Specialty Services Segments-

NEW BRIGHTON, Minn.--(BUSINESS WIRE)--APi Group Corporation (the “Company”) (NYSE: APG) is pleased to announce the acquisition of SK FireSafety Group and three additional planned acquisitions in its Safety Services and Specialty Services segments. These four complementary businesses are expected to contribute approximately $200 million of revenue in 2021 with adjusted EBITDA margins of approximately 13% in 2021.

Through the acquisition of SK FireSafety Group (“SKG”), a leading provider of critical safety services in the active fire and life safety markets in the Benelux and Scandinavia, APi has established a European platform for international organic and acquisition expansion. The other three planned acquisitions consist of two Safety Services companies that extend the Company’s geographic reach in Georgia and Massachusetts, and one Specialty Services company in Wisconsin. These three acquisitions are expected to close by the end of 2020.

The acquisitions meet the key criteria for APi’s acquisition strategy, which are the following:

• Alignment of values and culture fit
• History of strong free cash flow generated
• Experienced management team with proven record
• Service growth component
• Accretive to APi’s financial profile

APi is funding the approximately $300 million of transaction consideration for these four acquisitions with existing cash on hand. APi’s strong cash generation continued throughout the third quarter and as of the end of September, the Company had approximately $470 million in cash and cash equivalents on its balance sheet.

Russ Becker, APi’s President and CEO stated: “We are excited to welcome the leaders of these four businesses to the APi family. These acquisitions help expand our geographical reach in the important U.S. market and establish a beach head for expansion on the continent in Europe. These businesses have been resilient during the COVID-19 pandemic and we look forward to welcoming them into our family of companies and helping accelerate our growth.”

Mr. Becker continued: “As we conclude our third quarter we are pleased with the continued positive momentum in our business including the announcement of these acquisitions. Our pipeline of incremental M&A opportunities is robust and we expect to continue to explore opportunistic acquisitions as we move through the balance of the year and into 2021. We look forward to discussing these investments and sharing our Q3 results and full year 2020 outlook on our next call with investors on Wednesday, November 11, 2020.”

About APi:

APi is a market-leading business services provider of safety, specialty and industrial services in over 200 locations, primarily in North America and with an expanding platform in Europe. APi provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. We have a winning leadership culture driven by entrepreneurial business leaders to deliver innovative solutions for our customers. More information can be found at www.apigroupcorp.com.

Forward-Looking Statements and Disclaimers

Certain statements in this announcement are forward-looking statements which are based on the Company’s expectations, intentions and projections regarding the Company’s future performance, anticipated events or trends and other matters that are not historical facts, including expectations regarding: (i) the acquisitions, including the expected financial contributions from the acquisitions, the timing for signing and closing of the pending acquisitions and the source of cash to fund the acquisitions; (ii) the establishment of a European platform and expansion of U.S. geographical reach for continued organic and acquisition expansion; (iii) the Company’s acquisition strategy; and (iv) the Company’s acquisition pipeline and future opportunistic acquisition opportunities. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, including: (i) economic conditions, competition and other risks that may affect the Company’s future performance, including the impacts of the COVID-19 pandemic on the Company’s business, markets, supply chain, customers and workforce, on the credit and financial markets, and on the global economy generally; (ii) the ability to recognize the anticipated benefits of the acquisitions and of the Company to take advantage of strategic opportunities; (iii) changes in applicable laws or regulations; (iv) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (v) the Company’s ability to successfully manage the risks associated with international operations in connection with its international acquisition; (vi) with respect to pending acquisitions, the Company’s ability to execute acquisition agreements for the acquisitions, conduct adequate due diligence with respect to the businesses to be acquired and successfully close the acquisitions; and (vii) other risks and uncertainties. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.