The company said that whilst its French cash services business is in a strong position in the Paris market “its modest overall market share means that it is unlikely to meet, on any reasonable timeframe, the group’s strategic objective, which is to attain either a number one or two position in each of its national cash services markets.”
G4S said that euro 3.4m of the total cash consideration is to be held in escrow pending certain closing conditions which are expected to be satisfied by 30 November 2007.
Loomis said the acquisition of the French cash handling service is consistent with its strategy to “become the leading company in the local markets where Loomis has a presence.”
In a statement the company said that through the acquisition, Loomis, which is Securitas’ cash handling services division, will become the market leader in France.
Loomis put the enterprise value at approximately 230 MSEK (Million Swedish Kroner), or approximately GB pound 14.7 million.
G4S’ cash handling operation in France, with 720 employees, is present in the northern part of the country and in the Paris area.
According to Loomis, the operation has annual sales of approximately 430 MSEK ( GB pound 31.27 million). The customers are mostly banks, but they also have a high market share within retail.
The acquisition will be integrated in Securitas as of July 2, 2007.