Brink’s to Acquire Cash Management Operations in Argentina
July 13 2017 - 8:06AM
The Brink’s Company (NYSE:BCO), the global leader in cash
management, secure logistics and security solutions, today
announced that it has agreed to a cash purchase of Maco
Transportadora de Caudales S.A. (“Maco”) for approximately $209
million, with the final purchase price subject to post-closing
adjustments and foreign exchange translation. The transaction
is expected to close within 30 days, subject to customary closing
conditions. Based in Buenos Aires, Maco’s cash-in-transit and
money processing operations will be integrated with Brink’s
existing operations in Argentina. Over the last 12 months,
Maco generated revenue of approximately $90 million and adjusted
EBITDA of approximately $24 million.
Doug Pertz, Brink’s president and chief executive officer, said:
“Accelerating profitable growth through accretive acquisitions is a
key element of our three-year strategic plan. This
acquisition clearly demonstrates our commitment to executing on
that plan in South America, our fastest growing and most profitable
segment. We will move quickly to achieve substantial cost
synergies over the next two years, resulting in an expected
post-integration multiple of approximately six times adjusted
EBITDA.”
The acquisition is expected to be significantly accretive to net
income in 2019, and slightly accretive in 2017. Management
will update its 2019 targets, including the impact of acquisitions,
when it reports second-quarter earnings on July 26.
Pertz added: “We’re making significant progress in our strategy
to grow through acquisitions in our core businesses and existing
markets, and we have a robust pipeline of additional targets that
we are actively exploring. We are well-positioned, and have
the financial flexibility, to pursue value-creating acquisitions as
we simultaneously invest in organic profit growth initiatives.”
About The Brink’s CompanyThe Brink’s Company
(NYSE:BCO) is the world’s premier provider of secure logistics and
security solutions including cash-in-transit, ATM services, cash
management services (including vault outsourcing, money processing
and intelligent safe services), international transportation of
valuables, and payment services. Our customers include
financial institutions, retailers, government agencies, mints,
jewelers and other commercial operations. Our global network
of operations in 40 countries serve customers in more than 100
countries. For more information, please visit our website at
www.Brinks.com or call 804-289-9709.
Forward-Looking StatementsThis release contains
forward-looking information. Words such as "anticipate," "assume,"
"estimate," "expect," “target” "project," "predict," "intend,"
"plan," "believe," "potential," "may," "should" and similar
expressions may identify forward-looking information.
Forward-looking information in these materials includes, but is not
limited to the acquisition of Maco and the impact on the Company’s
results. Forward-looking information in this document is
subject to known and unknown risks, uncertainties and
contingencies, which are difficult to predict or quantify, and
which could cause actual results, performance or achievements to
differ materially from those that are anticipated. These risks,
uncertainties and contingencies, many of which are beyond our
control, include, but are not limited to: our ability to improve
profitability and execute further cost and operational improvement
and efficiencies in our core businesses; our ability to improve
service levels and quality in our core businesses; market
volatility and commodity price fluctuations; seasonality, pricing
and other competitive industry factors; our ability to maintain an
effective IT infrastructure and safeguard confidential information;
risks associated with operating in foreign countries, including
changing political, labor and economic conditions, regulatory
issues, currency restrictions and devaluations, restrictions on and
cost of repatriating earnings and capital, and restrictive
government actions, including nationalization; labor issues,
including negotiations with organized labor and work stoppages; the
strength of the U.S. dollar relative to foreign currencies and
foreign currency exchange rates; our ability to complete the Maco
acquisition, achieve expected synergies and successfully integrate
the business; our ability to obtain appropriate insurance coverage,
positions taken by insurers relative to claims and the financial
condition of insurers; safety and security performance and loss
experience; the nature of hedging relationships and counterparty
risk; access to the capital and credit markets; the outcome of
pending and future claims, litigation, and administrative
proceedings; public perception of our business and reputation;
changes in estimates and assumptions underlying critical accounting
policies; the promulgation and adoption of new accounting
standards, new government regulations and interpretation of
existing standards and regulations. This list of risks,
uncertainties and contingencies is not intended to be exhaustive.
Additional factors that could cause our results to differ
materially from those described in the forward-looking statements
can be found under "Risk Factors" in Item 1A of our Annual Report
on Form 10-K for the period ended December 31, 2016, and in our
other public filings with the Securities and Exchange Commission.
The forward-looking information included in this document is
representative only as of the date of this document and The Brink's
Company undertakes no obligation to update any information
contained in this document.
Contact:
Investor Relations
804.289.9709
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