Posts Tagged Constellis Group

Industry Talk: Sterling Global Changes Name To Janus Global Operations After Three Acquisitions

“Our rebranding to Janus Global Operations is part of our business plan to increase our global scalability and ensure a fully integrated capability for our clients,” said Dale Allen, vice president, commercial programs. Janus Global Operations is poised for unprecedented growth and expansion as the “go-to” multi-national leader that commercial organizations and governments can rely on to get the job done.”
“Driven by regional instability and violent extremism growing around the world, Janus Global Operations understands the new complexities and is capable of delivering solutions to meet the global operational demands of any client” said Alan Weakley, president and chief operating officer.
Janus Global Operations’ integrated capabilities are already at work around the world helping to protect clients and their critical assets and making the world a safer place for some of the most at risk communities.

Big news here. If you remember, EODT merged with Sterling Operations back in 2012 to form Sterling Global Operations. That merger made Sterling Global Operations into a mega mine and munitions clearance company. Which is important if you want to be competitive for EOD type contracts in a crowded, post war years environment. Although, business must be good because now they have merged into something way bigger.

The three companies they merged with are Janus Security International, SNE Special Projects and Tundra Security Afghanistan. Here is a quick run down of each company and what they bring to the table.

For Janus Security International from LinkedIn:

JSI is a specialist security and risk management provider, offering a full range of operational security services to commercial and government clients. JSI have operations in Iraq, Somalia and Mozambique. As a result of recent acquisitions and strategic partnering we now have capability in Nigeria, Uganda, South Africa, Libya, and Egypt.

We have been an Iraq-based company since 2003, staffed by predominately ex-military personnel. JSI is fully registered, licensed and insured, in compliance with current Government of Iraq (GOI) legislation, with offices in Erbil, Baghdad and Basrah and projects across the country.

JSI set up operations in Somalia in 2012 and have established a villa/office in Mogadishu town and office and an office and client accommodation in the Mogadishu International Airport area. Operations include airport meet and greet, life support, security management, remote area security management, consultancy and secure journey management inc B6 PSD teams.

In 2014 Janus Security established an operation in Maputo, Mozambique and via our partner, an operation in Libya.

JSI’s aim has always been to provide an alternative offering to those organisations requiring professional corporate and personal security services and consultancy. The founding principle of the company is to offer bespoke security solutions forged through our extensive knowledge and experience – using maximum local manpower and intelligence.

Services include:Protective Security
• Personal
• Logistics
• Facilities
• Offshore

Managed Services
• Incident management
• Secure accommodation
• Embedded Security Managers
• Secure fleet and journey management

Consultancy and Training
• Security consultancy and solution design
• Risk management, analysis and reports
• Crisis and Emergency Management training and simulation exercises (team to corporate)
• Hostile Environment Awareness Training (HEAT)
• Technical Security Solutions
Specialties
Protective Security Solutions, Managed Services, Consultancy and Training, Security Technology Solutions
Company Size 1001-5000 employees
Founded 2003

For SNE Special Projects on LinkedIn:

SNE Special Projects is an independent United Kingdom and United Arab Emirates based Risk Management Consultancy Company owned and run by former members of the UK Armed Forces. Providing specialist international security and support services to both private and corporate clients.

What makes SNE Special Projects different from other security companies?
“Simply the calibre of the operators we deploy on the ground, aligned with the bespoke personal service our management team provides to each and every one of our clients”

We carry out assignments focusing on tailoring levels of protection and security to mitigate risk by meticulous planning, intelligence and sound management. We are particularly adept and experienced of operating within the Middle East and North Africa where we have been successfully supporting our clients and offer the kind of capabilities that only a premium security firm can provide.

SNE specialise in operating within Libya where we work closely with our Libya partners Aldroop Alamena with our primary aim being to support international business back into the Libyan business sector. As one of the first security companies to establish a permanent presence in Libya post-revolution we are in a stronger position than any other to achieve this through our full turnkey range of bespoke risk management and transportation services. Our dedicated country management team based in Tripoli and Benghazi provide full time management oversight of our commercial client’s contracts as well as providing ad-hoc services to a growing number of NGOs in all areas of Libya. With our extensive experience and full country coverage we are the market leader in Libya with unparalleled capabilities.
Type Self Owned
Company Size 1-10 employees

And for Tundra Security Afghanistan (Tundra SCA?). They did not have a website or LinkedIn.

Tundra Security Consulting Afghanistan (SCA)· is an “Afghan-owned security company” that provides physical security services to local and foreign government organizations throughout Afghanistan. Tundra SCA is a sister company of Canadian Tundra Strategies and is “licensed to operate as an armed security provider by the Afghan Ministry of Interior”. Tundra SCA stands on guard for the Defence Department outside Canadian military forward operating bases and has collected more than $5.3 million. A· U.S. Senate report included Tundra on a list of companies that poach staff from Afghan security forces, angering President Hamid Karzai. Tundra is among those 45 PSCs which had not to be dissolved, due to cleverly used good connections to ARG Palace and and influential people within the Afghan Government setup.

Background:
Tundra SCA combines Afghan ownership with a Canadian senior management team to provide professional security services throughout the country.· Supported by satellite offices in Mezar-e-Sharif and Jalalabad, and fully staffed compounds in Kabul and Kandahar, Tundra SCA is currently providing security services to Foreign Governments and organizations involved in the reconstruction of Afghanistan.With operations that run country-wide, Tundra SCA is a leading and preferred risk mitigation and physical security provider in Afghanistan.· Tundra SCA is strategically positioned to provide physical security services, security consulting and incident response to Government Agencies, International Security Assistance Force (ISAF), Non-Government Agencies and private corporations.

Tundra provides a wide spectrum of operational expertise through uniquely qualified special operations personnel, intelligence professionals and industry leading experts who enable us to provide a wide range of consulting, security and intelligence services.

Tundra· employees and consultants are experts in their respective fields and are strategically located around North America and Asia so Tundra can physically and efficiently respond to any enquiry anywhere in the world. We take pride in our ingenuity, expertise, past performance and ability to execute security and mission support operations anywhere in the world.

In April 2010 a Tundra employee, (to remain unnamed), recently received special recognition from the Canadian Battle Group in Kandahar in the form of a Commanding Officers Coin. The Tundra employee has been the PSC commander for Task Force 3-09 at Patrol Base Sperwan Ghar (PBSG) since September 2009. During this time, his accomplishments were noted as being “truly outstanding” in the training and management of the Armed Afghan Guard Force located at PBSG.

Tundra Information Management Systems (TIMS) is a division of Tundra Group, which is specifically dedicated to both the gathering and analyzing of intelligence and information from both open and confidential sources. TIMS has the capability to provide organizations and interested parties with a range of· products allowing insights into past, current, and future events. This is achieved by utilizing long established connections with various Afghan government departments, local sources, international military forces, private corporations and Non-Government Agencies.

TIMS also uses human intelligence and other sources combined with powerful analysis to produce penetrating explanations of Afghan events. This independent, non-ideological content enables users not only to better understand country-wide based events, but also to reduce risks and identify opportunities in the region.

A·team of Afghan-based security analysts gather and analyze information from throughout Afghanistan to give an overview of the security situation in Afghanistan as well as its immediate geographical and strategic neighbors, thus allowing individuals to make informed decisions or be able to refer to documentation for the purpose of further research.

Tundra provides intelligence collection, analysis and dissemination to corporate and government clients in many different environments. These capabilities assist organizations in creating and sharing the “actionable” and “real time” intelligence required to make timely and informed decisions.

Tundra· gathers intelligence using a variety of methods, including both technical surveillance and human intelligence. We have extensive experience in managing gathered information and coordinating and integrating it into collaborative planning.

And to add to the data, I found a quote from Sterling Global’s older website about how many folks they had. Although this is the exact same number listed on the new website.

Sterling Global Operations is an employee-owned stability operations company employing approximately 7000 professionals worldwide. The company serves customers with munitions response; intelligence support; logistics; risk management and other services in some of the world’s most austere and hostile environments.

So what does it all mean? Well, JSI was all about Iraq, Somalia and Mozambique. SNE is all about Libya and Africa. And Tundra SCA gives them a license to operate in Afghanistan. The Sterling package brings in their EOD contracts, and having these connections globally allows them to provide total package solutions. Security, logistics, mine clearance, that type of thing.

In the press release below, they give a run down of exactly what all of this gives them and in the quote up top, the various officers of the company give their input. This is more of that merger and acquisition trend in the industry and it clearly shows that the companies are doing what they can to get an edge and secure their place with contracts worldwide. We saw this with the Constellis merger or the GardaWorld merger. The industry is definitely consolidating.

Now what is interesting is that Pentagon has expressed interest in trying to block some of these M and A’s amongst the larger defense companies. They claim it is a national security issue and could ‘lead to higher costs, decreased innovation and less competition‘. To the companies, it is called survival in a post war environment. –Matt

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SGO, international stability operations and risk management leader, announces major commercial & government market expansion; rebrands to Janus Global Operations

Apr 4, 2016

Sterling Global Operations (SGO), an integrated stability operations company with clients in Europe, Africa, the Middle East, Asia, and North America, is rebranding following mergers and acquisitions of risk management and security service providers Janus Security International, SNE Special Projects, and Tundra Security Afghanistan. The new enterprise, Janus Global Operations, builds on the company’s 28 year history of stability operations and expands the company’s global footprint and ability to scale in some of the world’s most austere locations.
The combined company, Janus Global Operations, possesses unparalleled access, localized licensing, and infrastructure to provide munitions response; demining; intelligence support; logistics; life support; risk management; and communications solutions to government and large multi-national corporations around the world. The newly integrated risk management capability enables immediate access to strategic regions in North Africa, Central Africa, West Africa, and Southwest Asia.
“Our rebranding to Janus Global Operations is part of our business plan to increase our global scalability and ensure a fully integrated capability for our clients,” said Dale Allen, vice president, commercial programs. Janus Global Operations is poised for unprecedented growth and expansion as the “go-to” multi-national leader that commercial organizations and governments can rely on to get the job done.”
“Driven by regional instability and violent extremism growing around the world, Janus Global Operations understands the new complexities and is capable of delivering solutions to meet the global operational demands of any client” said Alan Weakley, president and chief operating officer.
Janus Global Operations’ integrated capabilities are already at work around the world helping to protect clients and their critical assets and making the world a safer place for some of the most at risk communities.
“We are tremendously excited about the opportunities that lie ahead for Janus. Our aligned and fully integrated enterprise will offer our clients a more comprehensive solution to their stability operations requirements while fully aligning with our clients’ goals of social responsibility and corporate citizenship.” said Weakley.
Sagent Advisors served as exclusive financial advisor to Sterling Global Operations on its combination with Janus Security International.
About Janus:
Janus Global Operations is a stability operations company with more than 7,000 employees serving clients in North America, Europe, Africa, the Middle East and Asia. Janus’ services include munitions response; demining; intelligence support; logistics; life support; risk management; communications; and other services in some of the world’s most challenging and hostile environments.

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Industry Talk: Olive Group Merges With Constellis Group

This is the other big news I wanted to write about. I have written about Constellis Group in the past and they are definitely making some big moves. They merged with Triple Canopy, and while I was gone this happens. They merged with Olive Group!

And speaking of size, I wanted to get some information about exactly how big the family of companies are with Constellis Group? Here is what they said in a tweet.

Over 10,000 employees and contractors! That is a division in military terms. lol And if Olive Group’s numbers are correct, that means this merger doubled the size of this family of companies. Wow…

Some other side news with this merger is that Olive Group just purchased Newport Africa late last year. So Constellis is making a huge Africa play with this merger, and especially East Africa and in the oil and gas industry.

I was able to find a quote from the CEO of Olive Group as to their view of the merger and what it will mean for the company. Here it is.

The merger will provide us with a deeper funding base and allow the business to expand into new areas,” Mr St George told the Telegraph. “The world is not getting a safer place.”
Olive will continue to trade under its existing name and both the St George
brothers will take seats on the board of Constellis, which has traditionally specialised in Federal contracts in the US. Olive expects to hire more ex-forces staff according to Mr St George. The company will be looking to expand over the coming years and take on more ex-UK services personnel and operations staff to help it grow in key markets such as North Africa, Iraq and Saudi Arabia. Olive already employs around 5,000 people working in 20 different countries.

The other news for this deal is Moody’s assigned a B3 rating to the $450 million, five year second lien notes of Constellis Holdings, LLC. The rating outlook is ‘stable’. What is cool about this story is that Moody’s identifies what gives this rating it’s stable outlook. Here is a quote with my emphasis in bold black.

Moody’s calculates pro-forma debt/EBITDA and EBITDA/interest at the low 6x and low 2x levels, respectively (after Moody’s standard adjustments) as of the fiscal year ending December 2014, based on audited financial statements and taking into account the additional debt and Constellis’ acquisitions over the year. Estimating metrics is made difficult by the wide number of cost actions undertaken/planned, and the only partial year contribution of acquisitions during 2014.
These metrics compare somewhat favorably to many defense services contractors also rated at the B3 CFR. Nonetheless, operating cash flow in 2014 was modest despite the large tax refunds. Funding the Olive acquisition will increase financial leverage somewhat, and there is still limited visibility into Constellis’ cashflow. Further, Moody’s estimates that the pending dividend equates to more than a year’s worth of prospective free cash flow and the Constellis growth strategy will continue to emphasize acquisitions.
The high concentration on the US Department of State’s (DoS) Worldwide Protective Services (WPS) contract, which expires in October 2015, represents a rating constraint since the contract will make up a third of revenues pro forma for the Olive acquisition. At present, the $17 million of near-term debt amortization scheduled seem high versus reported funds from operation. Liquidity should improve given the lack of scheduled debt amortizations going forward and expectation of free cash flow.
The stable rating outlook benefits from expectations of steady profits from rising demand as a result of ongoing conflicts throughout geographic regions where Constellis and Olive operate (i.e. Middle East, North Africa). Increased security needs for the US Department of State’s diplomatic activity as well as for energy sector customers favors the demand setting. Potential for cost actions to raise cash flow generation also factor into the outlook.
Upward rating movement would depend on better intermediate term revenue visibility, which is unlikely to develop until after the WPS successor contract outcome is determined. (WPS task orders can endure beyond that contract expiration date.) Adequate liquidity, expectation of FFO/debt greater than 10% with annual FCF greater than $25 million would likely accompany an upgrade.
Downward rating pressure would result from backlog declines, weaker liquidity or low free cash flow.
The principal methodology used in these ratings was Global Aerospace and Defense Industry published in April 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.
Constellis is a global provider of training and security services focused on counter terrorism, force protection, law enforcement and security operations. From 2010 to October 2014 the company’s name was Academi Holdings, LLC. Before its 2010 ownership change, the company had been named Xe Services and Blackwater Worldwide. Pro forma for the pending acquisition of Olive, revenues in 2014 would have been approximately $1 billion. The company is majority-owned by Forte Capital and Manhattan Partners.

As you can see with the rating study, WPS is very important to Constellis Group. It also makes sense why they made their move with Triple Canopy–to secure more WPS business. The merger with Olive Group covers the oil and gas sector and entrance into Africa. I suspect we will see Constellis Group making more moves and getting bigger. The question is, who is next? –Matt

Constellis Group to Merge with Olive Group
MAY 7, 2015
Transaction creates the global leader in security, risk management, and complex programme management services Constellis Group’s capabilities in programme management and training combines with Olive Group’s strength in the provision of risk management solutions for blue chip corporate clients
A strong, well-financed platform for growth will help clients face increasingly complex challenges and risks. Olive Group will drive the combined Group’s enhanced offering for corporate clients operating in the energy, aviation and infrastructure sectors, particularly in the Middle East and Africa
Olive Group’s management team remains unchanged as the founders join the Board of Constellis.
Constellis Group and Olive Group jointly announced today that the two parties have agreed to merge Olive Group into the existing Constellis Group of Companies. Olive Group will drive the entity’s global focus on commercial sectors, and this merger establishes the combined resources and funding to deliver ambitious plans for commercial expansion, to which both parties are committed. The merged entity will leverage Olive Group’s market leading position and reputation for new growth.
Olive Group is a leading provider of innovative risk management solutions, which include security, programme management, life support and technology solutions, to blue chip commercial customers operating primarily in the energy, aviation, and infrastructure sectors. Headquartered in the Middle East with principal offices in the UAE, UK, and USA, Olive Group has more than 5,000 staff operating in 20 countries on 5 continents. Olive Group will continue to operate its distinct and highly respected brand, driven by its reputation of delivering operational excellence in conformity with the strictest compliance standards in the industry. Olive Group’s management team will remain unchanged and is committed to driving the growth of the combined Group with the scale and support afforded through this new partnership with Constellis Group’s global operations.
Chris and David St.George, co-founders of Olive Group, will join Constellis Group’s Board of Directors, adding immeasurable value, insight, and relationships in the commercial markets they and Olive Group’s leadership team helped establish over the past decade. Olive Group’s founding shareholders have chosen to maintain a significant ownership position in the combined entity.
“We are excited to welcome Olive Group into the Constellis family,” said Craig Nixon, CEO of Constellis Group. “The leadership, experience and capabilities of our combined operations establish us as a full-service risk management, integrated security, and managed services provider with a global presence.”
Olive Chairman Chris St.George said: “Olive Group’s clients face increasingly complex challenges in managing a myriad of risks including the safety of personnel, integrity of investments, regulatory compliance and the protection of corporate reputation. As a result, Olive Group needs to offer more services, and this merger establishes a unique position for the company to meet these global operational demands.”
Martin Rudd, Olive Group’s Managing Director, who will continue to lead Olive Group added: “Triple Canopy and Olive Group share deserved reputations for operational excellence and governance across government and commercial clients. Not only will this combination allow each company to benefit from the other’s considerable experience, but it will provide us both with a broad and resilient platform for growth. We are tremendously excited about the opportunities which lie ahead for the combined Group”.
The transaction brings together a global team of industry leaders serving a broad list of customers that include governments, NGOs, and a diverse mix of commercial entities. The transaction furthers Constellis Group’s participation in the commercial sector and provides global expansion into established and emerging markets across several continents. Operating under the oversight of a distinguished Board and an experienced management team, the combination of these companies will enable a significant expansion of services within the global stabilization market, delivering complex program management, mission support, integrated security solutions, training and advisory services throughout the world.

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