About 25,000 G4S employees will be joining US-based Brink’s, which terms itself the world’s largest cash management company, after G4S sold the majority of its conventional cash handling businesses. G4S will receive net cash proceeds of about £670m; and assign around £60m of net liabilities to Brink’s. G4S will retain its UK cash solutions arm; and in South Africa and some smaller markets.
Ashley Almanza, G4S Chief Executive Officer, 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 part of G4S sold had 2019 revenues of £0.6 billion. Brink’s says that this deal – its 14th since March 2017 – gives it 14 new markets: the Netherlands, Malaysia, Romania, Belgium, Ireland, Kuwait, the Czech Republic, the Philippines, the Dominican Republic, Cyprus, Indonesia, and the three Baltic states Lithuania, Estonia and Latvia. Brink’s also offers related logistics services such as secure transport of valuables, and vaulting.
Doug Pertz, president and chief executive officer of Brink’s, 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. We look forward to closing the transaction, executing our strategic initiatives, and driving substantial revenue and profit growth.”
G4S says that it is in the best interests of shareholders to develop further the Group’s payment and cash technology business, which owns Retail Cash Solutions, Cash360, Deposita and G4SPay; and that the sale of its conventional cash businesses is superior to a demerger of the Group’s Cash Solutions businesses. The firm adds that this deal concludes the multi-national’s ‘Cash Separation’ review, while the security contractor is still ‘managing for value or exiting a number of non-core businesses’. G4S plc’s 2019 results will be announced on March 11.
Recently G4S announced its work with the UK bank NatWest on its ‘Intelligent Safe‘, which will enable businesses to have same day crediting of its cash transactions without having to deposit that day’s takings in their local branch.
Visit www.g4s.com.
