Itâ€™s been confirmed. Brinkâ€™s is getting out of the shipping logistics business that it had been in with its BAX Global division of The Brinkâ€™s Company.
Brinkâ€™s is scheduled to sell BAX Global to Deutsche Bahn AG, a German firm. The company issued a press release today announcing that BAX Global would be sold for $1.1 billion.
According to Michael Dan, chairman, president and CEO of The Brink's Company, the move allows Brink's to get back to its core business.
"This sale will mark an important financial and strategic milestone for The Brinkâ€™s Company," said Dan in a statement released Wednesday morning. "Going forward, our company will be focused entirely on security-related services."
Dam also noted an estimated $200 million of the funds from the sale to Deutsche Bahn AG will be used "to provide funding for the VEBA, the financing vehicle for the Companyâ€™s legacy retiree medical costs." In addition, the company is planning to use between $400 and $600 million for share repurchases.
Brink's, well known for its armored vehicle business and its home security division, which recently reached its millionth customer, used Morgan Stanely as its financial advisor for the sale of BAX Global.