Richmond VA July 16 2017 The Brink’s Company. a Henrico County-based global security and logistics company, is acquiring a competitor in Argentina.
Brink’s said Thursday it will pay about $209 million in cash for Maco Transportadora de Caudales S.A., or Maco. The company is based in Buenos Aires and provides cash-in-transit services and money processing operations.
Brink’s is one of the world’s largest providers of armored truck transportation of cash and valuables, automated teller machine management, transportation logistics, and money processing, serving customers in more than 100 countries.
The final purchase price is subject to post-closing adjustments and foreign exchange translation, Brink’s said. The deal is expected to close within 30 days.
Maco has about 160 trucks in its fleet and about 1,460 employees, with four branches in Buenos Aires. Brink’s said it will integrate Maco’s operations with its own operations in Argentina.
The deal will give Brink’s a market share in Argentina estimated at more than 30 percent, second behind Prosegur Cash, a security company based in Spain.
Over the last 12 months, Maco generated revenue of about $90 million and adjusted earnings before interest, taxes, depreciation and amortization of about $24 million. Brink’s said it expects the acquisition to add to its net income slightly in 2017, and significantly by 2019.
The deal is part of a three-year strategic plan announced by Brink’s in March, aimed at improving the company’s revenue growth and profitability, after it posted annual losses in 2014 and 2015. The plan includes growing through acquisitions in high profit-margin segments of the industry.
“This acquisition clearly demonstrates our commitment to executing on that plan in South America, our fastest growing and most profitable segment,” Douglas Pertz, Brink’s president and chief executive officer, said in a statement.
A company spokesman said Brink’s operations in South America generated about $719 million of its $2.9 billion in revenue in 2016.
Although that was less revenue than the company makes in North America and other global operations, its operating profit margin in South America was about 16.8 percent, more than twice the company’s overall operating profit margin including other regions. Secure transportation is in demand in South America because cash is more widely used there than in other parts of the world.
“We’re making significant progress in our strategy to grow through acquisitions in our core businesses and existing markets, and we have a robust pipeline of additional targets that we are actively exploring,” said Pertz.
After posting losses for two years, Brink’s reported profit of $34.5 million, or 68 cents per share, for the full year of 2016.
The company’s shares closed at $70.10, up $1.20 or 1.74 percent, on the New York Stock Exchange on Thursday. Its stock price has risen about 70 percent this year.
Brink’s has 85 employees at its corporate headquarters in western Henrico, and about 30 more at a branch office in eastern Henrico.