Securitas to exit Loomis UK cash handling venture
26 July 2007 | 3342 views | 0
Securitas AB, HSBC Bank and Barclays Bank have signed a Heads of Terms agreement regarding the intention of Securitas' cash handling division Loomis to exit the LCM cash handling services that it provides to the two banks in the United Kingdom.
The Heads of Terms contemplate that the exit will occur during the fourth quarter of 2007.
LCM is a company jointly owned by Loomis (with 75 percent) and HSBC and Barclays (each with 12.5 percent), and has 2,300 employees.
LCM was created in 2001 when Barclays and HSBC outsourced their handling of physical and cash (notes and coins) in the UK. LCM took over 28 cash centres distributed throughout the UK from the two banks and from Securitas. LCM also had transferred over to it all the two banks employees involved with the handling as well as existing work procedures and reconciliation methodologies. During the period 2002-2004, the banks' 28 cash centres were consolidated and reduced in number to 17. New work streams and work methods were developed and implemented and the efficiency of the operations was improved, e.g. a new IT system was implemented.
Securitas and the banks have agreed that the intention is for Loomis to transfer the part of the business relating to management of cash for HSBC and Barclays back to those banks. The Heads of Terms contemplate that the transfer will take place during the fourth quarter of 2007, that the LCM business will continue unchanged until the exit date, and that the transfer will be completed without any interruption of services to customers.
Loomis and Securitas continue their ongoing internal investigation into the historic variances and additional stock takes are planned before the exit. The final results of these stock takes will be known during the second half of 2007.
Including the retained business from LCM, Loomis UK will have annual sales of MGBP 125 with some 2,500 employees in 32 locations throughout the UK. It will continue to focus on Cash Transport and Cash Processing as one of the market leaders in cash handling services in the UK. The Loomis Cash Handling Services Group will after the transaction have annual sales of nearly 11 billion SEK with some 20,000 employees in eleven countries in Europe and in the USA.