G4S to Push into Brazil

Hoping to generate revenue from the 2014 World Cup, being hosted by Brazil, which has the fifth-largest security market in the world, G4S, already operating in more than 110 countries on five continents, has been trying hard to push into Brazil.

In June this year, G4S the world’s biggest security Company, had bought a Plantech rival, Instalarme, for £23.5m. Plantech is a group focused on systems for securing airports, public transportation and hotels. The Brazilian economy is said to be growing by nearly 6% this year. G4S, it is being said had South Africa as its target earlier.

The new move however is expected to follow a completely different rule as the Brazil’s licensing laws requires it to go the other way. It has been seen that in most of the markets, the Company is first required to provide manned guarding and then proceed further to higher-margin services such as cash protection and provision of security technology.

By 2014, it is expected that G4S would commence with the offering of manned services, says Nick Buckles, G4S’s Chief Executive.

Seymour Pierce analyst Caroline de La Soujeole says, "We remain buyers of the shares on account of G4S' strong growth potential and its exposure to Government outsourcing, which we believe will be a key driver of growth going forward”.