The deal is expected to add 14 new markets to The Brink’s existing footprint
The Brink’s, a secured logistics and payment solutions provider, has agreed to acquire majority stake in cash operations of UK-based G4S for nearly $860m (£660m).
As per the Brink’s, the deal adds 14 new markets to the company’s existing footprint including the Netherlands, Malaysia, Romania, Belgium, Ireland, Kuwait, the Czech Republic, the Philippines, the Dominican Republic, Cyprus, Indonesia, Lithuania, Estonia and Latvia.
Cash operations of G4S generated nearly $800m revenue in 2019
The cash operations of G4S generated nearly $800m in revenue for 2019, with an operating profit of about $85m and adjusted earnings before interest taxes, depreciation and amortization (EBITDA) of about $115m.
It also excludes the entire G4S retail cash solutions business and cash operations in the UK, South Africa and several smaller markets.
Brink’s president and CEO Doug Pertz said: “This transaction represents our largest acquisition to date and further demonstrates our disciplined approach to value-added capital allocation. 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 addition, our expanded global footprint is expected to provide new avenues for accelerated growth as we begin to execute our Strategy 2.0 initiatives, targeted to further penetrate the global cash ecosystem with new high-margin, less capital-intensive solutions.”
The deal could be completed in multiple phases with over half of the enterprise value could be closed within 60 days of time.
The remaining closing could be completed before this year end, based on the estimated needed to obtain the necessary licenses and other approvals.