Brink’s Company | $BCO Stock | Shares Pop 16% After Dunbar Armored Acquisition & Upbeat Outlook

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Brink’s Company (NYSE: BCO)


Shares of Brink’s Company closed regular trading session on Thursday at $79.25 after gaining $11.05, or 16.20%. The climb came after the security company said it has agreed to buy Dunbar Armored, Inc. for about $520 million in cash.

Brink's Company Stock Chart

Brink’s hopes the merger is going help it achieve substantial operational and cost synergies driven by administrative efficiencies, branch optimization, and proved route density.

As a result, the company issued an upbeat outlook and now looks forward to reporting adjusted earnings ranging between $625 million and $685 million in 2019. Before acquiring its rival, Brink’s had set a guidance of $625 million.

Brink’s plans to fund the acquisition using available cash before the end of 2018. However, the deal is still subject to regulatory approval and customary closing conditions.

Brink’s CEO Comments

“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,” said, Doug Pertz, Brink’s president and chief executive officer.

“This transaction is the most significant demonstration to date of our strategy to accelerate profitable growth by making core acquisitions in our existing geographic markets.  Upon closing the Dunbar acquisition and the previously announced acquisition of Rodoban in Brazil, the ‘excess’ cash on our balance sheet will be fully deployed to generate strong returns, and we’ll still have most of our $1 billion revolver available for additional investments.  In addition, we will have invested more than 85 percent of the $800 million we targeted for accretive core acquisitions during 2018 and 2019,” the CEO added.

Brink’s Company Profile

Brink’s provides cash-in-transit services, such as transportation of valued commodities armored vehicles, ATM services, such as replenishment forecasting, remote monitoring of ATMs, cash replenishment, installation, maintenance, cash optimization, and service call dispatching services.

The company also offers transportation services for valuable items, such as precious metals, high-tech devices, jewelry, pharmaceuticals, currency, securities, and electronics.

It also provides cash management services, including check imaging, serving and deploying intelligent safe control gadgets and safes, money processing, electronic reporting, cashier balancing, account consolidation, and counterfeit detection services.

In addition, it offers guarding and security services aimed at protecting public venues, stores, airports, warehouses, and offices.

Further, Brink’s provides payment services, including prepaid cards, mobile phone top-up, and bill payment processing; and commercial security systems solutions, including alarm installation, digital video recorders, closed-circuit televisions, and motion detectors.

The company serves financial institutions, government agencies, retailers, mints, jewelers, among others. The competitors of the company include Garda World Security Corporation, G4S plc, Compania de Seguridad, S.A., Loomis AB, and Prosegur.

Brink’s was founded in 1838 and was previously known as The Pittston Company until May 2003. It headquarters are located in Richmond, VA. –Reuters