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Blog Exposure - Brink's Acquires Rival Cash Management Company, Dunbar Armored

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LONDON, UK / ACCESSWIRE / June 4, 2018 / If you want access to our free research report on The Brink's Co. (NYSE: BCO), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=BCO as the Company's latest news hit the wire. On May 31, 2018, the Company announced the acquisition of Dunbar Armored, Inc. Dunbar is a privately-owned cash management Company. The all-cash transaction is valued at approximately $520 million. Register today and get access to over 1,000 Free Research Reports by joining our site below:


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Deal Highlights

The transaction is expected to close by end of FY18 subject to regulatory approvals and other closing conditions. Brink's plans to use available cash in hand for financing the deal. The transaction brings together two of the largest cash management companies in the US which are ranked number two and number respectively. The deal is expected to strengthen Brink's market position in the cash management business in the US.

Commenting on the acquisition of Dunbar, Doug Pertz, President and CEO of Brink's, said:

"The combination of our two companies, each with an impressive heritage, forms a solid foundation for future success. We plan to integrate Dunbar's strong management, experienced personnel and efficient use of assets to accelerate operational excellence and continued margin growth in our US operations."

Kevin Dunbar, CEO of Dunbar Armored, added:

"We are delighted with the Brink's transaction and are confident that Brink's will continue the Dunbar successes. At the end of the day, our business is all about our great employees and loyal customers, and we are ready to entrust Brink's with both."

Advantages of deal

The transaction is expected to result in substantial cost and operational synergies of $40 million to $45 million annually. The synergies will be realized from improvement of route density, branch optimization, and administrative efficiencies. The Company expects that the synergies will be achieved over a three-year period although the maximum synergies would be achieved by end of the second year of completing the transaction.

Brink's also expects that the deal will be accretive to its non-GAAP earnings in 2019 and will increase the increase annual non-GAAP earnings by approximately 90 cents per share within two years.

The transaction also has major tax benefits including the reduction of effective non-GAAP tax rate by 100 to 200 basis points within one year of completing the deal. Brink's expects to reduce its effective tax rate by 400 to 600 basis points over the next several years. The Company does not expect to pay any US federal cash taxes for at least six years due to certain tax provisions related to the current acquisition.

Brink's plans to invest approximately $50 million over the next three years for branch rationalization and the integration of Dunbar's fleet.

The current acquisition is also in-line with Brink's goals of investing around $800 million in strategic acquisitions in FY18 and FY19. The Company acquired Brazil-based Rodoban in January 2018 for $145 million. Rodoban provides cash-in-transit, money processing, and ATM services to customers in south-eastern Brazil. Taking into consideration the acquisition of Rodoban and Dunbar, the Company has already utilized 85% of the $800 million set aside for such acquisitions.

Revised Guidance

Brink's revised its non-GAAP operating profit guidance for FY18 from $365 million to $385 million. The Company increased its guidance for adjusted EBITDA target for FY19 from $625 million to $685 million on the assumption that the acquisition of Dunbar is completed by the end of FY18. The Company will provide detailed guidance for the current year and for FY19 in July 2018 when it will report its Q2 2018 earnings.

About Dunbar Armored, Inc.

Hunt Valley, Maryland-based Dunbar was founded in 1956 and started as an armored car company. Dunbar is a privately-owned company that offers cash and valuable management solutions and secure logistics to customers in financial, commercial, and government organizations to meet their business requirements. Services and solutions offered by the Company include armored car service, cash vault processing, cybersecurity protection, wireless smart safes and security products, access control and remote monitoring, guard, and protective services etc.

About The Brink's Co.

Brinks is the world's largest cash management Company. The Company provides total cash management and secure logistics including cash-in-transit, ATM services, vault outsourcing, money processing, intelligent safe services, international transportation of valuables, and payment services. The Company's customers include financial institutions, retailers, government agencies, mints, jewelers, and other commercial operations.

Brinks has operations in 41 countries and operates over 1,100 facilities and has a fleet of over 12,600 vehicles. It is supported by a team of 62,300 employees across the globe.

Stock Performance Snapshot

June 01, 2018 - At Friday's closing bell, The Brink's' stock declined 1.64%, ending the trading session at $77.95.

Volume traded for the day: 750.21 thousand shares, which was above the 3-month average volume of 489.55 thousand shares.

Stock performance in the last month – up 4.00%; previous three-month period – up 7.96%; and past twelve-month period – up 21.70%

After last Friday's close, The Brink's' market cap was at $4.03 billion.

Price to Earnings (P/E) ratio was at 41.60.

The stock has a dividend yield of 0.77%.

The stock is part of the Services sector, categorized under the Security & Protection Services industry. This sector was up 1.0% at the end of the session.


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