APi Inks $3.1B Deal to Buy U.K.-based Fire Safety Firm
APi’s Training Facility near its New Brighton headquarters. Gunderson Construction

APi Inks $3.1B Deal to Buy U.K.-based Fire Safety Firm

Slated to close by the end of the year, the deal will double APi’s employee count and likely put the company on the Fortune 500 list.

A $3.1 billion acquisition is slated to double APi Group’s headcount.

On Tuesday, the New Brighton-based provider of safety and industrial services announced that it has inked a deal to buy the Chubb fire and security business unit from London-based Carrier Global Corp.

Chubb employs 13,000 workers across 17 countries; APi Group also has about 13,000 employees.

The deal is slated to close by 2021’s end, according to a news release issued Tuesday.

The acquisition is also likely to put APi Group on the Fortune 500 list. On Fortune magazine’s yearly ranking of U.S. public companies by revenue, APi ranked 656th, with a revenue of $3.59 billion in its 2020 fiscal year. Chubb, meanwhile, reported annual revenue of $2.2 billion.

Even if the two firms’ revenue remains flat in 2021, that would bring APi’s total revenue to nearly $5.8 billion. For comparison, Moody’s — the 500th company on the Fortune 500 list — reported revenue of $5.371 billion in its most recent fiscal year. Patterson Co., which was one of two new Minnesota entrants on the list this year, reported yearly revenue of $5.49 billion and ranked 491st.

As of the 2020 list, Minnesota had 18 Fortune 500 companies.

APi Group was acquired by a special purpose acquisition company, or SPAC, in 2019, well ahead of the current trend. The move turned APi into a publicly traded company; after it was acquired by a SPAC based in the British Virgin Islands, shares of APi began trading on the London Stock Exchange. In May 2020, the company switched to the New York Stock Exchange.

Ever since its own acquisition, APi has been buying up other safety-related companies. In October 2020, the company announced plans to spend $300 million on four acquisitions. That included the purchase of SK FireSafety Group, a Dutch supplier of fire extinguisher and other firefighting equipment.

“We have spent a tremendous amount of time evaluating several transformative opportunities as well as more traditional acquisitions,” said APi president and CEO Russ Becker in a news release. “With the acquisition of Chubb, we see a tremendous amount of accelerated organic growth and margin expansion opportunities across our combined platform.”

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