Brink's To Buy Dunbar Armored - Quick Facts

(RTTNews) - The Brink's Company (BCO) announced it has agreed to purchase Dunbar Armored, Inc. for approximately $520 million in cash. Dunbar Armored is a family owned provider of cash management and secure logistics throughout the United States, including cash-in-transit, ATM services, vault outsourcing, money processing, and intelligent safe services.

Brink's expects the acquisition to be accretive to non-GAAP earnings in 2019 and to increase annual non-GAAP earnings by approximately 90 cents per share within two years. The combination of Dunbar and Brink's U.S. operations is expected to yield annual cost synergies of $40 million to $45 million. The company also expects to invest approximately $50 million in capital expenditures over three years to support branch rationalization and the integration of Dunbar's fleet.

Brink's said it will update its guidance for 2018 when the company reports second-quarter earnings in July. The company said its organic growth of revenue and profits in local currency continues to meet or exceed management's expectations, as do the integration efforts and synergy capture from completed acquisitions.

Brink's increased its 2019 target for adjusted EBITDA from $625 million to $685 million, which assumes the Dunbar acquisition is completed by the end of 2018 and that partial cost synergies will be achieved in 2019.