G4S to sell majority of conventional cash handling to Brink's
G4S plc announces that it has entered into an agreement to sell the majority of its conventional cash handling businesses, with 2019 revenues of £0.6 billion, to The Brinks Company for an enterprise value of £727 million.
Courtesy G4S
Under this agreement, G4S will receive net cash proceeds of approximately £670 million and assign around £60 million of net liabilities to Brink’s.
Ashley Almanza, G4S Chief Executive Officer, commented: “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 Board has concluded that it is in the best interests of shareholders to develop further the Group’s rapidly growing payment and cash technology business, which owns industry-leading solutions such as Retail Cash Solutions, Cash360, Deposita and G4SPay. These industry-leading solutions deliver significant benefits for customers by transforming their payment and cash management processes.
The Board has determined that the sale of these conventional cash businesses is superior to a demerger of the Group’s Cash Solutions businesses and is in the best interests of G4S shareholders and other key stakeholders.
The transaction successfully concludes the Cash Separation review and represents an important milestone in the execution of the Group’s corporate strategy enabling G4S to focus on the growth of its core integrated security solutions business and to develop further its industry leading payment and cash technology business.
Security is a growing service industry and the Group expects to grow revenues at 4-6% per annum. G4S is a global leader in the development and delivery of integrated security solutions and the Group’s growing capacity to deliver these solutions provides G4S with a significant competitive advantage in our core markets.
G4S has organically and rapidly built market-leading positions in the design and delivery of payment and cash technology solutions in some of the world’s largest markets. The Group will continue to develop this high growth, technology-focused business.
In addition, the Group will retain its UK cash solutions business, which is, and has been, the principal employer of G4S’s Pension Scheme members. The UK cash solutions business is well positioned to provide outsourced cash management services to business and bank customers and, in so doing, to ensure that the UK continues to have a reliable and efficient cash infrastructure.
The Board has concluded that it is in the best interests of the Pension Scheme’s members and G4S that the UK cash solutions business is retained within the Group. The Group’s payment and cash technology business together with the retained conventional cash business represent 8% of the continuing Group’s total revenues.
As previously announced, we will be managing for value or exiting a number of non-core businesses to increase further our strategic, commercial and operational focus and our efficiency.