HSBC and Barclays Bank have set up a joint venture company to take over the wholesale cash management business of Loomis UK, the cash handling unit of Swedish group Securitas.
The Vaultex joint venture has acquired the fixed assets and operations of the Loomis unit and pumped £5 million of new equity into the company.
Securitas will book a £12 million loss on the sale, reflecting a transaction price lower than the book value and provision for warranties agreed with the banks.
Securitas made a provison for losses at the company of £64 million at the end of last year in the wake of an ongoing Bank of England investigation into accounting discrepancies.
Loomis UK will after the sale continue to focus on cash transport and cash processing.