US Investigations Services, Inc. Announces Completion of Recapitalization.
ANNANDALE, Pa.--(BUSINESS WIRE)--Jan. 10, 2003
US Investigations Services, Inc. ("USIS") today announced the completion of a recapitalization led by Welsh, Carson, Anderson & Stowe ("Welsh, Carson").
Welsh, Carson and its affiliates will invest $545 million in a combination of subordinated debt and common equity to acquire a majority interest in USIS. As a part of the transaction, participants in the USIS employee stock ownership plan received cash in exchange for 100% of the shares held by the ESOP. The Carlyle Group, who has been a minority investor in the Company since 1999, together with the senior management of USIS, also reinvested a total of $172 million in the Company.
USIS is the leading provider of background investigations, pre-employment screening and other security services in the U.S. Its clients range from Fortune 500 companies to The White House and the Pentagon, as well as more than one hundred federal, state and local government agencies. The Company's comprehensive line of services and advanced technology enable organizations to define, build and protect the integrity of their workplace all from a single point of contact.
"By combining scale with efficiency, USIS has become the high-quality, low-cost provider of critical services to corporations and to our national security," said Patrick J. Welsh, co-founder of Welsh, Carson. "We are pleased to welcome our new partners at Welsh, Carson," said Philip Harper, the Chairman and Chief Executive Officer of USIS. "With their support, this transaction has allowed us to fulfill a promise we made to our employee stockholders when we founded the Company - to realize the value that they helped create in the business and to allow them to personally diversify their retirement assets. Furthermore, it provides us the financial support to continue to grow our capabilities in order to address the increased demand for our services from various homeland security initiatives."
The financing for the transaction included a $330 million senior credit facility provided by Lehman Brothers as Sole Lead Arranger and Administrative Agent and Banc One as Syndication Agent. Lehman Brothers also acted as financial advisor to Welsh, Carson. Bear Stearns acted as financial advisor to the Company.
Welsh, Carson is one of the largest private equity firms in the U.S. and the largest in the world focused exclusively on investments in information services, communications and healthcare industries. Since its founding in 1979, Welsh, Carson has organized investment partnerships with capital of more than $12 billion.
The Carlyle Group is a global private equity firm with more than $13.9 billion under management. Carlyle invests in buyouts, real estate, high yield and venture in the United States, Europe, Japan and Asia, focusing on aerospace, defense, consumer, industrial, energy, healthcare, technology, and telecommunications and media.
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|Date:||Jan 10, 2003|
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