Acquisition in Spain
Thursday, January 20, 2000
The acquisition will be made in three steps. As a first step Securitas in Spain will acquire 75 % of the shares of Ausysegur from Lico Corporacion S.A. " Lico", a financial services company owned by 46 savings banks in Spain. In the second step Securitas in Spain will contribute its Cash In Transit "CIT" operations to Ausysegur and thereby increase the shareholding to 85 %. In the third step Lico will have an option to sell the remaining shares to Securitas earliest during the second year after the acquisition. Securitas will have an option to buy the remaining shares not later than during the fourth year after the acquisition.
Ausysegur has sales of MSEK 530 (MESP 10,300) with activities in CIT (48 % of sales), guarding (43 % of sales) and courier services (9 % of sales). The company is the second largest player in the CIT market in Spain with a market share of 16 %.
By combining the CIT activities of Securitas in Spain with the CIT activities of Ausysegur a new player with a good coverage on the Spanish mainland will be established. The future cooperation with the Spanish savings banks is also expected to be facilitated with the establishment of the new player. The estimated new market share in CIT will be 30 %. The synergies and the long-term effects of the acquisition will considerably strengthen Securitas' CIT operations in Spain and will make it possible to reach a good profitability.
The acquisition is subject to approval by the competition authorities, and will be included in the Securitas Group from the date of approval.
The price for 75 % of the shares will be MSEK 251 (MESP 4,875) to be paid after approval by the competition authorities. The total price for 100 % of the shares in Ausysegur is expected to be MSEK 335 (MESP 6,500). The second payment will take place as the option is exercised during second or fourth year after the acquisition.
Thomas Berglund, President and CEO of Securitas, comments on the acquisition:
"With the acquisition of Ausysegur we have created a platform that will enable us to build a sound and profitable CIT operation in Spain. The Spanish security market is important to us and this shows our long term commitment to the market."