SIS Prosegur, a leading cash management services provider, has bought cash and valuable services (CVS) business of Danish major ISS in India, the company said on Thursday. It did not disclose the deal value but some media reports pegged the deal value at Rs 150-180 crore.
ISS CVS provides transportation, vaulting and security related to cash and valuables. The firm has 6,000 employees and in 2013, it reported revenues of Rs 180 crore.
The divestment is part of ISS’ continuing strategic focus on core activities and it will use the funding to further deleverage its balance sheet, it said.
ISS separately operates facility management services in the country.
This is the second such asset sale by ISS in India. Early this year, PE firm India Value Fund Advisors (IVFA) and former Godrej Consumer Goods’ executive Arumugham Mahendran jointly acquired ISS Hicare, the second-largest pesticide services company in the country, for an undisclosed amount.
ISS Hicare was started in 2004 by Godrej Industries and Mahendran Holdings, to provide pest control services to residential customers in Mumbai, eventually expanding to become a pan-India player serving both residential and commercial customers. Formerly known as Godrej Hicare, it was acquired by Danish multinational ISS Global in 2009 for close to Rs 100 crore.
This deal was part of a global divestment where ISS Group, which is a global facility services provider that includes property, cleaning, support and catering and facility management, is exiting the pest control services business.
Last May it completed sale of the unit which handled markets like Australia, Austria, Belgium, Denmark, Germany, Italy, the Netherlands, New Zealand, Norway, Portugal, Spain and Switzerland to Anticimex. At present it manages pest control services business only in some emerging markets.
The cash management services business includes replenishment of ATMs, doorstep banking, transportation of bullion, cash in transit and cash processing services to banks, public utilities and retailers.
The acquisition will help SIS Prosegur to become a strong player in the east and south India markets. Currently, the company is said to be behind CMS and Brinks in the business.
“This is a strategic divestment for our Indian operation. The new owners can further develop the business which is at their core, while we can further focus on our core activities, in particular on delivering superior integrated facility services to our customers," said Thomas Hinnerskov, regional CEO of ISS Asia Pacific.
SIS Prosegur is a JV between Security and Intelligence Services (SIS India) and Spanish firm Prosegur which was formed in 2012. SIS holds 51 per cent stake while the remaining 49 per cent are held by Prosegur in the JV. The company provides range of cash-in-transit and ATM services for banks and commercial establishments.
(Edited by Joby Puthuparampil Johnson)