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Brink’s secures Rodoban purchase
Posted on Thursday, 11 January 2018 11:27
The Brink’s Company, which claims to be the world’s largest cash management firm, is buying Brazil-based Rodoban Seguranca e Transporte de Valores for USD 145.00 million in cash.
Completion is slated for the second quarter of 2018, subject to customary closing conditions, including approvals from the relevant regulatory bodies.
This is the security group’s seventh purchase since March 2017; together, the transactions are predicted to generate adjusted earnings before interest, taxes, depreciation and amortisation totalling about GBP 90.00 million in 2019, giving a post-synergy multiple of less than six.
Brink’s provides automated teller machine (ATM), payment and intelligent safe services, as well as vault outsourcing, money processing, and the international transport of cash and valuables, to mints, government agencies, retailers and financial institutions.
It is known for its bulletproof armoured vans and trucks, the drivers of which are normally equipped with guns.
Chief executive Doug Pertz said the deal was expected to increase net income within 12 months and that it planned “to invest approximately USD 400.00 million per year to acquire similar businesses in 2018 and 2019”.
The Richmond, Virginia-based company operates in 41 countries, has 60,700 employees and is listed on the New York Stock Exchange.
For the three months ending 30th September 2017, its South America segment recorded operating profit, on a US Generally Accepted Accounting Principles basis, of USD 48.00 million, increasing 37.1 per cent compared to the same quarter last year (Q3 2016: USD 35.00 million).
This accounted for 72.7 per cent of the group’s USD 66.00 million total operating profit for the period.
Founded in 1970, Rodoban provides cash-in-transit, money processing and ATM services in south-eastern Brazil and generates annual revenue of around USD 80.00 million.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 94 deals targeting security systems service providers announced worldwide since January 2017.
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