(Reuters) - French investment firm Wendel SE said on Thursday it would sell about 40 percent of its equity stake in security services company Allied Universal to Caisse de dépôt et placement du Québec (CDPQ) at an enterprise value of more than $7 billion.
CDPQ, one of Canada’s biggest public pension funds, will provide $400 million to support Allied Universal’s growth strategy, Wendel said in a statement.
The pension fund will become the largest shareholder in Allied Universal after the deal, CDPQ said in a separate statement.
Wendel said it would have about 18 percent ownership in Allied Universal after the deal, adding that it expected to receive about $350 million in cash proceeds.
The deal is expected to close in the third quarter of 2019.
Barclays and Morgan Stanley & Co served as the financial advisers to Allied Universal, while Citigroup Global Markets advised CDPQ.
Reporting by Shubham Kalia in Bengaluru; Editing by Subhranshu Sahu
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