The Swedish cash handling company Loomis’ US subsidiary has reached an agreement to acquire the cash handling business of the American company Pendum LLC. The purchase price amounts to 100 MUSD, corresponding to approximately 640 MSEK.
Operations acquired include cash replenishment and management of 43,000 ATMs across the US and with an annual turnover of 100 M USD. However, Pendum’s ATM maintenance and repair business, which includes first and second line maintenance services and parts and product sales for ATMs will remain with Pendum and are not part of the Loomis acquisition.
The acquisition will add revenue of approximately 65 MUSD to Loomis’ US subsidiary during 2011, corresponding to approximately 420 MSEK, as compared to the total turnover of 4 billion SEK in 2010. Operations are expected to give a positive contribution to Group income in 2011.
Most of the Pendum operations that we are acquiring will be incorporated in our existing organisation and structures, which will increase productivity at a large number of our branch offices. At the same time we are strengthening our geographical presence and market position in several important regions, among them Ohio and Kentucky, says Lars Blecko, CEO of Loomis.
Lars Blecko also notes that the acquired operations will widen the base for an increased focus on comprehensive cash handling solutions. With the acquisition of the cash handling business of Pendum, Loomis is able to expand its offering of nationwide Cash Management Service (CMS).
One of Loomis' long-term goals is to increase the share of business consisting of comprehensive solutions rather than just cash transportation. Loomis aims to serve its customer's total cash handling needs as its core focus and sees this acquisition as a next step in capitalizing on the emerging opportunities in the cash handling arena.
The acquisition of Pendum’s cash handling operations is an important contribution to the Loomis Group strategy to focus on growth, both through acquisitions and organically.
The target closing date for the acquisition is April 30, 2011, which means that the operations will be consolidated by Loomis as of that date. The closing of the transaction is subject to customary conditions, such as regulatory approval.
During 2010 Loomis made three acquisitions in the US, with a total turnover of over 10 MUSD.
More available - www.loomis.com