RICHMOND, Va. - The Brink's Company has announced the sale of its BAX Global operating unit to Deutsche Bahn AG for $1.1 billion in cash. Net proceeds after the payment of taxes and transaction costs are expected to approximate $1.0 billion.
The company retained ownership of its Air Transport International LLC (ATI) subsidiary pending receipt of required regulatory approval. In the interim, ATI operations are expected to have minimal impact on the company's financial position.
Michael Dan, chairman, president and chief executive officer of The Brink's Company, said: "The divestiture of BAX Global is an important strategic milestone that enables us to focus exclusively on supporting the growth of our security-related businesses and building upon our core strengths, including the Brink's brand. Our preliminary strategy for the use of proceeds remains unchanged from our initial announcement of the agreement to sell BAX Global. Approximately $225 million will be used immediately to fund the VEBA, the financing vehicle for our legacy retiree medical costs. We will pay down up to $185 million in debt to reduce costs and provide capacity for growth. Pending consideration and approval by our board of directors, we are studying the return of between $400 million and $600 million to shareholders through share repurchases. I want to thank the employees of BAX Global one more time for their hard work and sacrifices in making BAX Global into the strong performer that it is today. I am certain that they will achieve even more as part of Deutsche Bahn's freight transportation and logistics team."