G4S sells cash handling business for £660 million
Thousands of employees from security company G4S will be moved to a US rival that bought its conventional cash handing arm for £660 million.
The Brink Company agreed to buy the unit, which includes businesses such as Retail Cash Solutions, Cash360, Deposita and G4SPay.
It means that 25,000 members of staff will no longer report to the British company, instead taking their orders from Brink’s bosses in the US.
“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,” said Ashley Almanza, the chief executive of G4S.
In August last year, G4S flagged the cash solutions business for a demerger, saying it would create “two strong, focused businesses” that could operate independently.
However, the board later decided that it would make more sense to sell the conventional cash handling business to Brink.
“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,” it said on Wednesday.
Brink takes over a majority of the conventional cash handling business, which among other things picks up cash from supermarkets and high street stores at the end of the day.
The business had revenues of around £600 million in 2019, G4S said. The deal values the arm at £727 million when including the parts that G4S is keeping.
The deal is the American security company’s biggest ever and brings it into 14 new countries, said chief executive Doug Pertz.
However, G4S will be keeping UK arm of the unit.
Mr Almanza added: “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.”