3rd Sep 2019 11:42
(Alliance News) - Shares in investment firm J2 Acquisition Ltd were suspended Tuesday after it bought safety systems firm APi Group Inc for USD2.9 billion ahead of listing its shares in New York.
In response to the deal, shares in J2 have been suspended from trading on the London Stock Exchange. The firm does not expect trading to resume on the LSE, but J2 is looking to list on the New York Stock Exchange after the deal closes in the fourth quarter of 2019.
"We believe APi is an excellent foundation for J2's initial investment and is solidly in line with our disciplined investment criteria," J2 Co-Founder Martin Franklin said. "The company demonstrates similar qualities to Jarden, in that it unlocks uncommon value from niche businesses and delivers a strong track record of consistent organic performance complemented by disciplined M&A."
In 2019, APi is expected to generate 10% earnings before interest, taxes, depreciation & amortisation margins on revenue of around USD4 billion.
"This transaction meets our long established acquisition criteria with significant potential for short and long term value creation for our shareholders," Franklin added.
J2 will fund the acquisition through a mix of cash on hand as well as new debt financing. In 2017, J2 raised USD1.25 billion through an initial public offer.