Group 4 Falck is taking over Federal Protection Services (Pty), a South African security services company.
Group 4 Falck has signed a contract to take over Federal Protection Services (Pty), a South African security services company with a turnover of DKK 105 million and 3,600 employees, which is about the same size as Callguard, the company taken over in early September. The acquisition will, Group 4 Falck say, increase their turnover in South Africa to DKK 365 million and the staff to about 8,600, which will consolidate the Group?s position as absolutely one of the largest security operators in the South African market, the multi-national firm claims. The security services market in South Africa is characterised by strong growth and high margins, Group 4 Falck argue. The firm expects demand for outsourced services in the country to surge, including for airport security and ambulance services. Furthermore, the corporate sector is extensively outsourcing guarding and surveillance activities. Group 4 Falck opened a new prison early in 2001, which is operated on behalf of the South African authorities. The prison will reach full capacity of 3,500 inmates in early 2002. The total value of the South African security services market is estimated to be DKK 10-11 billion, and the industry has some 280,000 employees. The annual growth rate in the market over the next five years is estimated to be up to 13pc.
