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Brink’s mulling G4S takeover: Sky News
Posted on Friday, 06 September 2019 15:55
US-headquartered private security and protection company Brink’s could decide to acquire the cash solutions unit of UK peer G4S, according to Sky News.

Citing undisclosed sources, the broadcaster said the deal could be worth in excess of GBP 1.00 billion, if it goes ahead.

However, the people cautioned that Brink’s is just one of a number of companies to have approached G4S about a potential purchase, with analysts naming Prosegur as one business which could be interested.

Nevertheless, discussions with the Richmond, Virginia-headquartered company are underway.

Sky News noted that the strategic fit between the two parties means the potential acquisition is not a big surprise.

A sale of the business has been on the cards since late 2018, when South Africa’s Business Live publication picked up on comments made by G4S chief executive Ashley Almanza to the effect that the firm was mulling over an exit from the unit.

In April of this year, the firm said was still looking to divest the asset but had not attracted any firm offers.

Last month, while announcing its financials for the first half of 2019, G4S said it hoped to complete a demerger during H1 2020, noting that it had received a number of unsolicited expressions of interest and would continue to evaluate proposals alongside the demerger plans.

None of the parties involved have commented on the Sky News report.

According to Zephyr, the M&A database published by Bureau van Dijk, G4S’s most recent asset sale took place in June 2017, when it jettisoned UK-based education and social support services provider homes2inspire to Prospects Group 2011 for GBP 11.40 million.

G4S describes itself as the world’s leading global, integrated security company.

The company’s operations span more than 90 countries and it employs in excess of 500,000 people.

It posted revenue of GBP 3.75 billion in the first half of 2019, up from GBP 3.58 billion over the corresponding timeframe in the previous year.

© Zephus Ltd