Loomis enters Latin America with acquisition in Argentina
Loomis has acquired the Argentinean cash handling company Vigencia which has around 190 employees.
With operations primarily in the Buenos Aires region, the company has just under 40 cash in transit (CIT) vehicles and net sales of around SEK 60 million.
The acquisition, which is Loomis’ first outside Europe and the US, is the beginning of a broader expansion intoLatin America. Vigencia’s management team will remain in place.
Part of Loomis’ strategy is to expand into new markets in Latin America and Eastern Europe through acquisitions.
There are several reasons for choosing Latin America: Most of the countries are cash-intensive, which means there is a significant demand for cash transport services, at the same time as much of the cash handling is done by the banks. Consequently, there is good potential for growth.
Another reason is that Loomis has extensive experience from many years in the cash handling business in the Spanish market which, from a structural perspective, has strong connections with the Latin American market.
The Argentinean cash handling market consists of one large player that accounts for around 60 percent of the market, while four medium-sized companies and a number of local players account for the rest.
“Since the market is fragmented we have a good opportunity to use Vigencia as a platform to achieve our goal of growing organically through acquisitions to become one of the two largest players inArgentina. Over time we also expect to develop coordination opportunities with other Latin American countries,” says Loomis’ CEO Lars Blecko.
The acquisition of Vigencia is Loomis’ fifth since the new strategy was announced at the end of 2010.
Vigencia is expected to make a positive contribution to Loomis’ profits as soon as 2012.