News

Brink's to acquire rival cash management firm Dunbar

June 1, 2018

The Brink's Company, a provider of cash management, secure logistics and payment solutions, has agreed to purchase Dunbar Armored Inc., the fourth largest U.S. cash management company, for approximately $520 million in cash.

The transaction will be funded from the company's available cash and is expected to close by the end of 2018, subject to customary closing conditions and regulatory approval, according to a press release.

Hunt Valley, Maryland-based Dunbar employs approximately 5,400 people, operates 78 branches throughout the U.S. and has more than 1,600 armored trucks in its fleet, the press release said.

Over the past 12 months, the privately held company is said to have generated revenue of approximately $390 million and adjusted EBITDA of approximately $43 million.

Brink's said that the acquisition will expand its customer base with Dunbar's complementary focus on small and medium-size retailers and financial institutions.

In a statement on the acquisition, Brink's President and CEO Doug Pertz said:

Dunbar and its employees have built an excellent reputation and a loyal customer base over the last 95 years under generations of family leadership. 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 U.S. operations.

Brink's expects the combined entity to achieve substantial cost and operational synergies driven by improved route density, branch optimization and administrative efficiencies. The company expects to invest approximately $50 million in capital expenditures over three years to support branch rationalization and the integration of Dunbar's fleet, yielding an estimated $40–$45 million in annual cost synergies.