General Motors/Delphi Automotive Awards Pinkerton $1.1B Contract
20 November 1998
General Motors/Delphi Automotive Awards Pinkerton $1.1 Billion Contract for Security Services; World's Largest Commercial Security Agreement Expands Current Partnership
WESTLAKE VILLAGE, Calif.--Nov. 19, 1998-- Pinkerton's Inc. Thursday announced it has been awarded a long-term contract expansion to provide security services to General Motors Corporation/Delphi Automotive Systems (GM/Delphi) in the United States. With a projected value to exceed $1.1 billion over eight years, the agreement represents the world's largest commercial contract for the outsourcing of security services. In addition, the contract includes an option for GM/Delphi to extend the agreement beyond the year 2006, although the value of this potential extension has not been determined.
Under the expanded contract, Pinkerton will provide uniformed security officer and patrol services to more than 150 GM and Delphi plants and facilities in the U.S. The company will also continue to provide security consulting, investigations, personnel protection, intellectual property protection and emergency management services.
"We are extremely pleased with the contract expansion, which we believe represents GM's continuing confidence in our ability to deliver high-quality security solutions on a worldwide basis," said Denis R. Brown, Pinkerton president and CEO. "Over the years, the relationship between our companies has evolved into a true business partnership and has advanced our corporate vision of becoming the preferred provider of world-class, global security solutions."
Pinkerton's partnership with General Motors dates back more than five years. The security company currently provides services to the auto maker in the U.S., Canada, Mexico, Asia and Latin America. In October, Pinkerton was awarded a contract to provide security services for GM's Opel plant in Portugal, which produces vehicles for the European market.
In addition to the U.S. contract expansion, Pinkerton is engaged in discussions with GM to extend current service agreements in Canada and Mexico.
Concurrent with the expansion of Pinkerton's partnership with GM/Delphi, the company also announced the creation of the Pinkerton Automotive Services Division, a new industry specialty group based in Detroit. Larry Taylor, previously senior vice president of Pinkerton's GM Support Group, has been promoted to president of the new Pinkerton division.
Pinkerton is one of the world's largest and most respected security companies, providing uniformed security officers, investigations, consulting, business intelligence, security-systems integration, and employee selection and communications services. The company today has revenues exceeding $1 billion and lists more than 80 percent of the U.S. Fortune 1000 as clients. With headquarters in Westlake Village, Calif., Pinkerton (www.pinkertons.com) has more than 250 offices and 47,000 employees throughout the U.S., Canada, Latin America, Europe and Asia.
Certain statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve estimates, assumptions and uncertainties, and accordingly, actual results could differ materially from those expressed in the forward-looking statements. Such uncertainties include, among others, the factors referred to in the company's Annual Report on Form 10-K for the fiscal year ended Dec. 26, 1997.