APi Group Acquires Chubb Fire And Security

By Haris Khurshid, Published Jul 28, 2021, 01:13pm EDT (Info+)

The multi-billion-dollar Chubb Fire & Security business has finally been sold to APi, a relatively unknown company within physical security.

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Inside this note, we examine why Carrier made the move, what APi intends to achieve, plus Chubb's strengths and weaknesses.

****:*** *** *****'* ******** **** ** the ***** ****.

Overview ****

*** ***** ********* *** ****************** **** & ******** ******************* ****** ***********, ******* *** ******** ** $*.* billion, ********** ** $*.* ******* ** cash *** ~$*** ******* ** ****. As **** ** *** ****, *** will **** ******* ** ********** $*** million ********** **** ********** *** ****** Global, ** *** **** ** ********* preferred ******. ****** ********** ***** ~**.*% of ***.

Valuations ** *** ****

*** *** * ~$* ******* ****** capitalization ******** ** *** $*.* ******* annual ******* *** $*** ******* *** loss (***:*** **** ****** ******) ***** ***** *** ****** ** ~1.5x *** **** ******* ** ~$* billion *** ~$*** ******* *** *******.

APi ******* ** *********

*** **** ** *** *********** ** to ****** *** *****’* ******* **** safety ******** ********, ** *** **** in *** *******:

*** *********** ** ***** ********** *** into *** *****’* ******* **** ****** services ********. ** ******* *** *********** will ** ****** ********* **** *********** synergy *************.

*** *** ******** **+ ********* ** the **** ** *****, *** ** average ** * *** ****:

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**** ****** ****** ***'* ****** ******** include:

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APi **********

*** ************* *** ***** *** ** * local ********* *********** ******* *** *****, prior ** **** *********** ***~$*.* ******* revenue ** ****, **% ** *** USA:

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*** ** *** * *********** ****** in ******** ******* ** *** ***, though ** $*+ ******* ** ***** US *******, **** ***** **** * significant ********** *********.

*** *******'* ******* ******* ******** ********(*.*. **** **********, ********, *** ****), with********* ********(*.*. ********** ***** ********* *** ******* infrastructure) ***** ****** *************** ********(*.*. *** *** *** ******** ************** and **********) ** ***** ******** ********, as ***** **** ******** ************ *********:

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Chairman ***** **** **** ** **** ***

***'* ************** ************ ** **** *** *** ****** major ****** ****, *********** *** ****** *** **** ** 2019, ***** ****** ************ ****** ** numerous ******** ******** ********* **********, ******* **** ******* *** $** billion ** ****.

******, *** **** **** **** *** public *** ***** ** ***********, * reference ** ********'* ******* ** ********* a ****** **** ****** *** ********* to ** **** *****. ******** ******* APi's ******** ******* ** ** ******* acquisitions:

****'** **** ** ** * ********** small *****. * ****, ****'** ***** a $* ******* ********, *** **'* been ******** ***** ************

***, ** ******** **** ** **** when **** **** ******, ** **** to **** *** **** ******:

* ***** ***** ** **** ** helpful ** ****, ** *** ****, in *** ****** ***** ******* ** larger ***********. ** ** ***** **** to ***** **** ********. ** *** call ******, *** ****, ** ******* off ** * $*** ******* ********, we ***** ** **** * ** and * **** ******* ****** ********. We **** *** **** ********* ****.

*** *** *****, **** ****-***** **** at ~$*.* ******* *******, ***** **** APi ** ****** ** ******* **** more ********* ***** *******.

***** ******** **** **** ** ********* business:

CEO **** ***** **** **** ********

********, ***'* **-**** ******* ********** ******, *** *** ****** *** ******* historically ** ****** ** (******) **** smaller ************, **** *** ****** **** Franklin *** ** **** *** ***** home *** ***:

* **** * ********** ***** ****, culturally, ** **** *******, ****** ****, we **** *******. *** ***** ********** experience, *** ****, ********* *** *******, you ****, ****** ************* *** ********* that *** **** ********** ** **. And ** * **** **** **** we ***** *** ***** ****.

Carrier - ***** *****

*******, ***** ********* ~$**.* ******* ** revenue ** ****, *** **** *** of *** ** ****. **** *** been ****** ** ****** ***** **** & ******** *** * *** *****.

***** *********** * ***** **** ** Carrier's ******** *** *** **** ************* related ** *** ***** **********. ** contrast, ***** **** ** * *********** part ** ***'* ********, ** *** chart ***** *****:

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High ********* *******

*** **** **** **% ** *****'* revenue ** ********* ***** **** ************* improve *** ** **** *********, ********** that:

*****-**** ******* ********* ** ******** *** update ******* ******** ******* ***** ************ and *******

******** ****** ********* ***** *** *********** recurring *******

Chubb ****** ** ************ *** ******

***** ***** ** *** ** *** largest **** *** ****** *********** ********, at ~$* ******* ****** *******, ***** presence ** ******* ************ ****** * countries, ********** **% ** *** *******: the ** (***** **** **** *******), Australia, ******, **** ****, ******, *** the ***********. ***** **** *** **** a *********** ******** ** *** ****** States.

***** ******** ******** *** ******** **** as**** ******/***** ************ *********** ******** *********(*.*. ***** ************ *** ****** *******), among ***** ********** ******** (*.* ******* maintenance *** **********). *****'* ******* ** divided ******* ****** ******* **** *** security ******* ********:

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Combining *** *** *****

*** *********** ** ********* *************, **** APi ********** ****** *** *** ******* inside *** *** ******** ** ***** who **** ** ****** ******** ******* of *** ***.

*** *********** ********* ***** ******** ** ~55% *** ******* *********:

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*** ****** * *** ******* ***** they ******* **** **** *** ** top ******* ********** ******* *********:

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Comparable ************

** *** ******** *********** ****, *** two **** ********** ********* *** *** and **********, *** **** **** **** numerous ************ ** *** **** *** years, ****** **** ** ***** ********* are ******** ** *** ** **** APi *** ********** ******* **** ***** in *****'* ********* *******.

*******

**** **** *** **** ****** ***** APi ** ******** ***** **** **** go. ***** ***********-******* ******** ****, ********* this ****-***********, ******** **** ** *********** to ****** * ***** ********** ********** the *****. ** **** ** *********** to *** ** *** ******** **** security *********** *** ** **** ***** this.

Comments (5)

****:

******* *** ******* **** ********** ** APi's **** ****, ***'* ********'* ******** roll-up *** ********* ***** *** **** more ************ ****** *****.

Agree
Disagree
Informative
Unhelpful
Funny

* ****** ** **** **** *** and ***** ***** *** ******, **** UTC *** **** ***** *** *******. I **** ****** ** **** **** finally **** ***** ****** **** **** more ** ******** ********, ** ** this **** **** ******* *** **** in **** ***** *** *******, *** almost **** **** ********.

* ****** ** ***** ****** **** 2014-mid ****, *** ** ** ***** time *** **** *** **** *** more ****. **** ****** "****** *****" who ***** ** **** *** ********, but ***** *** ** **** *** the **** ***** ** ** ******** work, **** *** ******** ***** ** learn **** ******. **** ******* ******* on ***** ******* ********** ********, ******* firing/letting ** * *** ** ******* staff *** ****** ******* *** ***** call.

**'* *** **** ****** * ****. I *** ******* **** * ******* dollar ***, ***** **********, **** ** support ***** *******.

* ***** **** **** ******* *** work ** *****, *** *'** **** contemplated ***** **** ***** **** ***** management *******. * **** *** **** be ****** *** ***** **** *** was. ** *** **** * ***** segment ** ***'*, *** **** *******'*, business *** **** ****** ****'* **** what ** ** **** **(*****). **** seemingly ****'* **** *** ** ******* for *** *********** ******** ** * service ***** ********. **** *****/******* *** a ****** **** *********** * ***** (and ********* *** **** **** ********** and ****) ** * ******* ****'* why *** **** *** ** *****.

* ** **** **** **** **** well *** *****. *** ***** **** and * **** ** ** * spent ***** **** *****. ** ** gets **** ** **** **** ** company * ***** ******* ** ****.

Agree
Disagree
Informative: 2
Unhelpful
Funny

**** **** *** ******** ******* **** **** ******** *********** *********:

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****** ********** ****:

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*********** *** * *********** ******* ** fire ******* *** *** ** **** in ********.

***-***** ***********, **** **** ** **% service *******:

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Agree
Disagree
Informative: 1
Unhelpful
Funny

** ***'* *** ******** **** *** Q2 *******, **** ********* ********* ************ but *** *** *** ** ***** Chubb:

** *** ********* ************* ** *********** -- ********* *********** *** *&* ************* with ******** ** ** $*** *******, while **** ********** **** ****** *** Jim ** **** ** ******* ****** opportunities, **** ******** ******* **** *** one ********, ** ** * ******* dollars. ** **** ******* ** ******* on **** ** ***** ************* ** we **** ******* *** ******* ** the **** *** **** ******* ** updating *** ** *** ******** ********.

**** **** ********** ***** *********** ***** price:

***** ** ***, ** **** ** our ******* ** ***** *********, ** built **** ************ **** *** ***** for ***** ****, ******, *** ****** saw, ***** **** ******** ** ***** that ****'* ****** -- **** ** which ***** **** ******* ** *********. I ***'* ***** **** **** ** much ********* ****. **** ** * very ********** *****. *****'* * *** of -- ** *** **** *********** of ********* ***** *** *****. ***** -- *** ********** *** ** **** always ** *********, ***** *** **** list ** ***** **** **** ** be *******.

******* * ********* ***** ********* ******-***** businesses:

** **** ***** **** ** **** something ********* *** ****** ** -- that ** ********** ** **** ** these ******-***** **********. *** **** ******* an *********** *** **.

Agree
Disagree
Informative: 1
Unhelpful
Funny

****! * ****** ** ***** ***** in *** *** **** ****** *** merger *** ******* **** *******, ****-****, in **** ****** *** *** *******. They ****** ** **** *** **** Industries, ******* *** ***** ***** ** the *.*. ** ***** ** **** to *** ** *** **** ***** to ****** *** ***** ** *** States. ****** ***, * **** ***** flourishes *** ** ******* *** ********* and *** *** *** *******.

Agree
Disagree
Informative
Unhelpful
Funny
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