G4S completes $57m sale of youth prisons

Integrated security company G4S announced on Monday that it completed the sale of G4S Youth Services in the US to BHSB Holdings for $56.5m paid in cash.

The FTSE 250 firm said the proceeds from the sale would be used for corporate purposes.

G4S Youth Services was described by the board as a “leading provider” of residential-based juvenile services throughout Florida and in the states of Texas and Tennessee.

In the year to 31 December, the division posted profit before taxation of $5.1m - down from $5.6m - and, as at year-end, it had gross assets of $21.5m - a marginal year-on-year improvement from $21.4m.

As part of the transaction, senior management in G4S Youth Services would remain with the business at completion, the board confirmed.

“As previously announced, the sale of our US Youth Services business is part of our portfolio management programme initiated in 2013 to improve our strategic, commercial and operational focus,” said group chief executive Ashley Almanza.