Brink's to buy Brazilian cash-handling business
The Brink's Co., a provider of cash management, secure logistics and security solutions, has agreed to purchase Brazil-based Rodoban for approximately $145 million in cash.
The acquisition, which is subject to customary conditions, including approval by the Brazilian antitrust authority, is expected to close in the second quarter of 2018, a Brink's press release said.
Based in the state of Minas Gerais, Rodoban provides cash-in-transit, money processing and ATM services primarily to customers in southeastern Brazil, and generates annual revenue of approximately $80 million.
Rodoban will be the seventh acquisition for Brink's since March 2017, for a total expenditure of approximately $515 million. According to the release, the acquisition will allow Brinks to expand its service reach, improve route density and realize significant cost synergies.
"The Rodoban acquisition is another demonstration of our commitment to accelerating profitable growth by making acquisitions in core businesses in existing markets," Brink's President and CEO Doug Pertz said in a statement. "Once completed, we expect this transaction to be accretive to net income within 12 months. We have a strong pipeline of additional targets, and plan to invest approximately $400 million per year to acquire similar businesses in 2018 and 2019."