The Brink’s Company, a cash management, route-based secure logistics and payment solutions, has agreed to purchase for approximately $860 million the majority of the cash operations of U.K.-based G4S, a global security and cash management company.
The $860 million (£660 million) acquisition of G4S by Brink’s will be financed by cash and debt from Brink’s existing credit facility. It will be completed in multiple phases, with more than half of the enterprise value expected to close within 60 days.
The remaining closings are expected to be completed before December 31, 2020. This is based on the estimated timing required to obtain necessary licenses and other approvals.
The acquisition includes cash management operations in 14 new markets. The Netherlands, Malaysia, Romania, Belgium, Ireland, Kuwait, the Czech Republic, the Philippines, the Dominican Republic, Cyprus, Indonesia, Lithuania, Estonia and Latvia.
The acquisition is Brink’s largest
This transaction will be the company’s fourteenth acquisition since March 2017, for combined consideration of approximately $1.95 billion.
In total, these acquisitions are expected to generate adjusted EBITDA of approximately $300 million, resulting in an average post-synergy purchase multiple of approximately 6.5 times.
Doug Pertz, president and chief executive officer of Brink’s, commented:
“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.”
The transaction adds 14 new markets to the existing Brink’s footprint
The G4S operations to be acquired generated pro forma 2019 revenue of approximately $800 million. The company’s operating profit of approximately $85 million and adjusted EBITDA of approximately $115 million.
The transaction adds 14 new markets to the existing Brink’s footprint. It excludes the entire G4S Retail Cash Solutions business and cash operations in the U.K., South Africa and several smaller markets.
Brink’s plans to disclose additional information about the acquisition and its expected contribution to the company’s three-year strategic plan (2020 – 2022) at its Investor Day meeting in New York on June 1.