A host of potential buyers have lined up to buy global security and protection company Brink’s’ cash management business in India, as the Richmond, Virginia (US)-headquartered firm looks to hive off the unit as part of global strategic review. Hitachi-owned payment services provider Prizm Payments, Thomas Cook India and cash logistics major SIS Prosegur are among those that have expressed a strong interest in acquiring the venture, according to sources with direct knowledge of the developments.
NYSE-listed Brink’s is a global leader in security-related services for banks, financial institutions, mines, retailers, diamond and jewellery industries, pharmaceuticals, and a variety of other commercial and government customers. From armoured transportation to cash management, services also include money processing, long-distance transport of valuables, vaulting and other value-added solutions. With a footprint that spreads across 100 countries, it employs 70,000 people worldwide. Exiting the space in India follows a larger rationalisation of its portfolio in several markets.
The company, which has already received two term sheets or firm offers so far, expects to raise Rs 250-300 crore from the sale of its cash management business in India, a sector that has seen considerable churn over the last 12 months. The deal, according to people privy to negotiations, is expected to close by April. Mumbai-based investment bank Equirus Capital has been given the mandate for the transaction.
Cash management services sector includes replenishment of ATMs, doorstep banking, transportation of bullion, cash in transit and cash processing services to banks, public utilities and retailers. The sector, in India, is dominated by CMS Info Systems and SIS Prosegur, a joint venture between India’s SIS Group, one of the country’s largest private security services providers, and Spain’s Prosegur, the world’s second largest cash management company. Both these companies manage about 80,000 ATMs across the country, out of a total of about 1,80,000 ATMs currently being operated in India. As per industry estimates, Brink’s is the third-largest player in the space. Its clients include HDFC Bank, ICICI Bank and Euronet. There has been a fair amount of consolidation taking place in the cash management sector in recent months.