Loomis acquires SecurePost, the cash handling business of the Swiss Post Group

Rhea-AI Summary

Loomis AB, via its subsidiary Loomis Schweiz AG, has agreed to acquire certain assets and liabilities of SecurePost AG from Swiss Post Group for an enterprise value of CHF 17.5 million. The acquisition includes customer contracts, employees, and operational assets, contributing approximately CHF 66 million in revenue for 2020. While the current EBITA is negative, it is expected to become marginally positive post-integration in FY2022. The acquisition aims to enhance Loomis' service offerings in Switzerland and is projected to impact earnings per share negatively in 2021.

Positive

• Acquisition valued at CHF 17.5 million enhances service offerings in Switzerland.
• Expected revenue contribution of CHF 66 million in 2020.
• Integration anticipated to lead to profitability over 2 years.

Negative

• Current EBITA is negative; expected marginally positive only post-integration.
• Initial dilution of earnings per share expected in 2021.

SOLNA, Sweden, March 30, 2021 /PRNewswire/ -- Loomis AB has, through its wholly owned subsidiary Loomis Schweiz AG (Loomis Switzerland), entered into an agreement to acquire certain assets and liabilities of SecurePost AG (SecurePost), a subsidiary of Die Schweizerische Post AG (Swiss Post Group). The transaction scope includes all relevant customer contracts, employees and operational assets. New commercial agreements with other entities of the Swiss Post Group have been agreed and will be in effect as of closing of the transaction. The enterprise value is approximately CHF 17.5 million.

SecurePost has a nationwide footprint in Switzerland and approximately 440 employees. Revenues during 2020 were approximately CHF 66 million. The business contributes, in addition to traditional cash in transit (CIT) and cash management services (CMS), with an installed base of some 1,300 smart safes that will be integrated into Loomis' Swiss SafePoint portfolio.

The business will be reported in segment Europe and consolidated into Loomis as of closing of the transaction, which is expected on May 3 2021. The transaction is not subject to any regulatory approvals and the purchase price is payable on closing.

The current operating margin, EBITA¹⁾, is negative and expected to be marginally positive on an integrated basis for FY2022 following the partial realization of synergies. Once fully integrated over 2 years the acquired volumes are anticipated to reach profitability representing a post-synergy purchase multiple of approximately 4 times EBITA.

Including integration and transaction costs, the acquisition is expected to have a dilutive impact on the earnings per share of Loomis in 2021. From full-year 2022 the initial dilution is anticipated to be recovered and the acquisition accretive to pre-acquisition earnings per share.

"Through acquiring the cash handling operations of Swiss Post we gain a platform that allows us to further develop our service offering and value proposition in the Swiss market. We look forward to continuing to add value to our new and existing customers in Switzerland and proudly welcome all new employees and customers to Loomis", says Patrik Andersson, President and CEO of Loomis.  

¹⁾ Earnings before interest, taxes and amortizations

March 30, 2021
 

CONTACT:

Patrik Andersson
President and CEO 

Mobile: +46 76 111 34 00   
Email: patrik.andersson@loomis.com

Kristian  Ackeby
CFO

Mobile: +46 70 569 69 98   
Email: kristian.ackeby@loomis.com

Anders Haker
Chief Investor Relations Officer

Mobile: +46 70 810 85 59
Email: anders.haker@loomis.com

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/loomis-ab/r/loomis-acquires-securepost--the-cash-handling-business-of-the-swiss-post-group,c3316751

The following files are available for download:

https://mb.cision.com/Main/51/3316751/1394770.pdf

Loomis acquires SecurePost, the cash handling business of the Swiss Post Group

 

View original content:http://www.prnewswire.com/news-releases/loomis-acquires-securepost-the-cash-handling-business-of-the-swiss-post-group-301258126.html

SOURCE Loomis AB

FAQ

What is the value of Loomis' acquisition of SecurePost?

Loomis' acquisition of SecurePost is valued at CHF 17.5 million.

What revenue did SecurePost generate in 2020?

SecurePost generated approximately CHF 66 million in revenue during 2020.

When will the acquisition of SecurePost be finalized?

The acquisition is expected to be finalized on May 3, 2021.

How will the acquisition impact Loomis' earnings per share?

The acquisition is anticipated to dilute Loomis' earnings per share in 2021 but become accretive from full-year 2022.

What are the expected synergies from the acquisition of SecurePost?

The integration of SecurePost is expected to lead to profitability after realizing synergies over two years.