Cardtronics UK to sell retail cash-in-transit operations
26 May 2015 | 2347 views | 0
Cardtronics, Inc. (CATM), the world's largest retail ATM owner/operator, today announced that it has signed an agreement to sell the retail portion of its U.K. cash-in-transit operation.
The retail arm of Cardtronics U.K.'s cash-in-transit business, which provides cash pickup and delivery services for retail stores, will be divested to Loomis, an international leader in the cash handling services industry. Cardtronics U.K. will continue to provide cash replenishment and maintenance services for both its owned and third-party ATM estates. The deal to divest the retail cash-in-transit business is expected to close on July 1. Purchase consideration is approximately [Pounds]18 million.
In November 2014, Cardtronics acquired Sunwin Services Group, which consisted of a manned guarding business, a cash-in-transit operation serving retailers, a cash-in-transit operation serving ATMs, and an ATM maintenance operation. As previously announced, the manned guarding business was sold in February 2015 to Kingdom, a leading provider of manned guarding services in the UK. In the transaction announced today, the retail cash pickup and delivery business is being sold to Loomis. Cardtronics will retain the ATM cash-in-transit operation and the ATM maintenance operation, which support its core ATM operations in the UK.
"This divestiture allows Cardtronics to continue to strengthen the efficiency of our UK operations and focus on our core ATM customers. Loomis is widely acknowledged as an industry specialist with a long history of managing cash for the retail industry, and we expect that our retail customers will benefit from the specialized services that Loomis offers," said Jonathan Simpson-Dent, Managing Director, Cardtronics Europe.
Anticipated Impact to 2015 Results
Cardtronics expects its revenues in the second half of 2015 to be reduced by approximately $13 million due to this divestiture. Impact on profits is expected to be immaterial to 2015 results. Cardtronics plans to update full year 2015 financial guidance in connection with its second quarter earnings release, anticipated to occur in late July or early August.