US-owned security company Chubb will sell 100% of its South African business to a black economic empowerment consortium led by Kilimanjaro Capital. The entity will then be rebranded.

The move follows the passing of the Private Security Industry Regulation Amendment Bill, which proposes that multinationals relinquish 51% or more of their shareholding to local investors.

Standard Bank commercial banking head Craig Polkinghorne noted that the deal was “ground-breaking” as it funds both growth and empowerment. Standard Bank is financing the deal, for which a purchase price has not been disclosed.

“After the tender sale process, we were approached for financing and immediately saw the potential as the consortium had the ability to leverage its existing guarding business and also expand into new markets.

“As a bank committed to assisting entrepreneurs and commercial entities to increase opportunities efficiently we were happy to facilitate this major transaction. This is the introduction of a black owned company into a 'real economy' business,” said Polkinghorne.

Chubb provides integrated and independent system solutions for asset and people protection, fire detection and suppression, access control, closed circuit television, electric fencing, as well as public address and voice evacuation.

New Chubb South Africa CEO Yagan Nair said while the company was still in the process of making key appointments and finalising implementation, it had ambitious plans to grow into the future – notably by harnessing the vast national footprint of Chubb.

“We are committed to ‘making South Africa safer together’ with all stakeholders and to use improved safety and technology as a catalyst for growth and job creation. Together with our shareholders and their vast entrepreneurial backgrounds we are confident of realising this dream.

“Further, our shareholders have identified guarding as a key offering to be added to the Chubb portfolio of predominantly armed response. We can leverage off the synergies created and we foresee numerous client opportunities in this segment,” he added.