Brink’s to acquire most of G4S’s cash operations

The Brink’s Company announced it has reach an agreement to acquire the majority of G4S’s remaining cash management businesses for approximately US$860 million (£660M).

The acquisition includes assets in 14 markets globally: the Netherlands, Malaysia, Romania, Belgium, Ireland, Kuwait, the Czech Republic, the Philippines, the Dominican Republic, Cyprus, Indonesia, Lithuania, Estonia and Latvia. Excluded from the sale are G4S’s cash businesses in the U.K., South Africa and several other smaller markets.

G4S sold its Canadian cash solutions business to GardaWorld in 2013 for approximately $110M (Cdn).

The acquisition will close in phases, according to Brink’s, with more than half of the total enterprise value expected to close within 60 days. The remaining should close before Dec. 31, 2020.

“This transaction represents our largest acquisition to date and further demonstrates our disciplined approach to value-added capital allocation,” said Doug Pertz, president and CEO, Brink’s, in a statement. “The acquisition of these select G4S cash operations is an excellent strategic fit that provides a strong platform for substantial growth. It positions us to extend our proven Strategy 1.0 organic revenue and operating profit growth initiatives into 14 new markets including cash-intensive, emerging growth markets in Asia and Eastern Europe.”

In a separate statement issued by G4S, Ashley Almanza, G4S’s CEO, said, “This transaction represents an important milestone in the execution of our corporate strategy. The sale of these conventional cash businesses simplifies the Group and enables G4S to focus on the growth of our core integrated security solutions business and the further development of our rapidly growing cash and payment technology business. The proceeds from the sale of these conventional cash businesses reduce financial leverage and provide the Group with the flexibility to continue to invest in our core businesses and we believe that the increased focus and financial strength will deliver material benefits for customers, shareholders and employees.”

The G4S announcement also stated: “As previously announced, we will be managing for value or exiting a number of non-core businesses to increase further our strategic, commercial and operational focus and our efficiency.”

As a result of the acquisition, approximately 25,000 G4S employees will be joining Brink’s.

The G4S operations to be acquired generated pro forma 2019 revenue of approximately US$800M, operating profit of approximately US$85M and adjusted EBITDA of approximately US$115 million. Brink’s said it will disclose more details about the acquisition at its investor day meeting in New York on June 1.