The UK-based ArmorGroup International plc, a provider of protective security services, announced the acquisition of Neil Young Associates (NYA), a leading specialist kidnap and extortion consultant, for a maximum consideration of £1 million ($1.94 million).
Neil Young (presumably no relation to the rock star with the same name) founded NYA in 1990. It “operates on a global basis and has particular expertise in providing governments, international corporations and private individuals with kidnap and extortion (K&R) prevention, training and response services, as well as other consultancy services,” said the bulletin. “NYA is a recognized world leader in this highly specialized market, and is an approved K&R consultancy for most of the world’s largest insurers and specialist risks brokers. NYA’s exclusively retained consultants come from a variety of backgrounds, including the British Special Forces and intelligence services, and have worked on over 180 cases of kidnap for ransom and extortion in many different parts of the world.”
Armor’s announcement also noted: “Kidnapping, detention and extortion are now some of the fastest growing crimes in the developing world, with around 15,000 reported incidents worldwide each year. The insurance market relating to K&R is estimated to be valued at around $250 million, based on the annual premiums paid for this service, and growing at around 10-15 percent annually.”
ArmorGroup has agreed to acquire the entire issued share capital of NYA from Neil Young for an initial consideration of £250,000 ($485,000) in cash. “The remainder of the £750,000 [$1.45 million] consideration may be payable in three annual tranches, dependent on the operating profits of NYA over the relevant period,” the bulletin explained. “Neil Young will continue to manage the growth of NYA, which will trade as NYA International Ltd.
ArmorGroup CEO Dave Seaton commented: “We are delighted to be announcing the acquisition of NYA which is a first class K&R specialist consultancy. This is a fast growing sector and we believe NYA will be accretive to earnings in 2007. NYA’s excellent reputation and well established track record will ensure that ArmorGroup can meet client demands for training, contingency planning and response to the growing threat posed by kidnap and ransom, and makes NYA an important addition to the Group.
“While NYA will continue to service its existing client base, it will also have a key role in developing consultancy services for ArmorGroup. This acquisition will further diversify the Group’s revenue stream, in line with the Group’s strategy, and will allow us to offer our global client base an even greater range of high quality security services. “
Was this article valuable?
Here are more articles you may enjoy.