Often the recent target of investing groups who were critical of share prices and the company's strategic plans, The Brink's Company announced this morning that it will be spinning off the Brink's Home Security unit. The home security unit has provided residential alarm installation and central station monitoring services nationally.
The decision to spin off the Brink's Home Security unit was approved by the company's board of directors, and the move will be a tax-free stock distribution directly to the shareholders of The Brink's Company. The spin-off is expected to occur in the fourth quarter of this year; it would effectively separate the businesses of the home security unit from the core focuses of The Brink's Company, which include ATM services, armored car/guard transport, and currency processing.
Michael Dan, chairman, president and CEO of The Brink's Company, said the split allows the company to have its own management focus and a targeted service offering.
"As separate publicly traded entities, each company should benefit from enhanced management focus, more efficient capitalization and increased financial transparency," said Dan. "In addition, shareholders will have a more targeted investment opportunity, and incentives for management and employees will be more closely aligned with company performance and shareholder interests. Given these advantages, we are confident that this transaction will enable BHS and Brink's, Inc. to more quickly realize the valuations they deserve."
According to a business profile statement released by The Brink's Company, Brink's Home Security employees some 3,600 person, and is currently doing business in all U.S. states, plus Washington, D.C., and in western Canada. The company reportedly has 1.2 million subscribers on contract and had 2007 revenues of $484 million, with operating profits at $114.2 million.
As part of the spin-off agreement, The Brink's Company also announced that investing firm MMI Investments will have one of MMI's nominees nominated as a Brink's Company director, and will also have an MMI Investments nominee nominated for the Brink's Home Security board after the spin-off.