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U.S. private security firm Allied Universal has put its multibillion-dollar initial public offering (IPO) on hold due to hiring challenges and economic instability, according to the Financial Times, citing CEO Steve Jones.
“The last 10 to 12 months have been really choppy waters for public markets, so we’re very comfortable just continuing to remain private,” Jones told the British newspaper.
In an email to Reuters, the Pittsburgh, Pennsylvania-based company said it is keeping an eye on financial market conditions and will reconsider the IPO when circumstances improve.
“Like all large employers, we feel the effects of a tight labor market. However, we have processes in place to recruit tens of thousands of security professionals every week to fill positions for our clients and to successfully grow our business,” a representative for Allied Universal stated.
In February, Reuters reported that blank-check companies backed by buyout firm Warburg Pincus and billionaire real estate investor Barry Sternlicht were in discussions to take Allied Universal public in a $20 billion deal. This deal was expected to involve three special purpose acquisition companies (SPACs): Warburg Pincus Capital Corp I-A, Warburg Pincus Capital Corp I-B, and an affiliate of Sternlicht’s JAWS Estates Capital LLC.
