Brinks preparing £1 billion plus takeover of G4S cash solutions arm

American cash handling company Brinks is planning a takeover of the cash solutions division of FTSE-250 support services group G4S, in a deal worth more than £1 billion.

Sky News has revealed that the New York Stock Exchange listed company are amongst the parties who have recently approached the world’s biggest security company, G4S regarding the purchase of their cash solutions arm.

Brinks, which has a market value of $3.66bn (£2.98bn), is one of the leading organisations in the global security industry.

Since it was founded in 1859 by Perry Brink, the company has grown into the world’s biggest cash-handling group, employing more than 62,000 people and operating in more than 40 countries.

They launched their interest in the deal following G4S’s announcement of a plan to demerge into a separate listed company next year.

The G4S division accounts for roughly 15 per cent of group revenues last year and approximately 23 per cent of earnings before interest, tax and amortisation.

Analysts believe the unit could be worth between £1.5 billion and £2 billion, although a valuation of just over £1 billion is likely to be more realistic. However, they believe this area of the business to have significant potential for growth.

Following the announcement of its half-year results, G4S revealed it had received approaches from several parties about a deal.

It said: “The company has actively engaged with these parties and the board will continue to evaluate proposals for all or parts of the business alongside the implementation of our demerger plans.”

Nigel Fry, General Practice Partner at Milsted Langdon said: “The planned acquisition of the G4S cash solutions arm would see Brink’s strengthen its position at the fore of the cash handling market.

“If you are considering a merger or acquisition, then it is important that you seek specialist advice to discuss the options available to you before making any decision.”

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