RICHMOND, VA -- The Brink's Company, a provider of security-related services, this week announced that its board of directors has approved a strategic decision to spin-off its Brink's Home Security unit (BHS), one of the largest and most successful residential alarm companies in North America, into a separate publicly traded company. The Brink's Company will continue to operate Brink's, Incorporated, its secure transportation and cash management unit. The spin-off of BHS is expected to be completed in the fourth quarter of 2008. The spin-off is expected to take the form of a tax-free stock distribution to The Brink's Company shareholders.
In November 2007, the company announced that it had retained the Monitor Group, an international consulting firm, to assist the board in the evaluation of various strategic options. The board also had the benefit of updated analyses from Morgan Stanley. The board has completed its review and has determined that a spin-off of BHS serves the best interest of its shareholders by providing, in the board's view, the best opportunity for value creation.
"Today's announcement, which is the culmination of a comprehensive and thorough review of the strategic options available to the company, further demonstrates the board's commitment to enhancing shareholder value," said Michael T. Dan, chairman, president and chief executive officer of The Brink's Company.
BHS, which has approximately 3,600 employees, is one of the largest and most successful residential alarm companies in North America. In 2007, BHS had revenues of approximately $484 million and operating profit totaling $114.2 million. BHS operates in all 50 states, the District of Columbia and several markets in two western provinces in Canada. BHS's ability to provide "an outstanding customer service experience," as awarded by J. D. Power and Associates, has created a loyal customer base that includes approximately 1.2 million systems under monitoring contracts. Through its dedication to high quality customer service, BHS maintains one of the highest subscriber retention rates among major residential alarm companies.