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Further consolidation in the Cash-in-Transit Industry

Categories : Cash is efficient
October 3, 2016
Cash-in-transit industry going strong.
Communication Team / Equipo de Comunicación

Prosegur, the Spanish security services company, is considering spinning off its cash division.

The company has announced that it is studying the initial public offering of the cash division, possibly in the first half of 2017, as part of the reorganization of the business in three divisions: cash management, security and alarms. The company would maintain a majority stake in the business.

Prosegur reported first-half sales of € 1.84 billion and 43% come from the cash-in-transit business. Currently 50% of the market is dominated by 5 companies, while the other half is run by 500 smaller ones. CFO Antonio Rubio believes Prosegur has a competitive advantage in this fragmented sector and is already planning to lead market consolidation.

Prosegur is present on all continents.  In February 2016, Prosegur acquired a 33.33% stake in South African cash manangement company SBV.

Company shares rose 8.3% in Madrid after the news, closing at up 2.4%. Gaining 43% this year, Prosegur’s value is estimated at €3.75 billion.

To read the original article [in Spanish], click here Prosegur Cash.

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