Brink’s evaluates sale

RICHMOND, Va.—Activist hedge fund Pirate Capital’s efforts to get The Brink’s Company to consider a sale or tax-free spin-off of one of its divisions appears to have yielded some initial results: On Nov. 28, Brink’s announced it’s hired the consulting firm Monitor Group to “assist in the ongoing evaluation of the various strategic options available to the company.” Brink’s is the parent company of Brink’s Home Security and Brink’s Incorporated, the cash-handling business. Pirate (along with other major shareholders such as MMI) has been after The Brink’s Company to consider selling off one of its divisions for more than a year. Thomas Hudson, manager of Pirate Capital, was appointed to the Brink’s Board of Directors in February 2007. In an interview with Security Systems News on Feb. 15, Hudson said he foresees “material progress toward the sale of Brink’s within 12 months.” (Search “Pirate predicts” at www.securitysystemsnews.com.) In an email interview Nov. 28, Chris Kelly, general counsel for Pirate Capital said, “We are pleased that with the retention of Monitor. Brink’s is reinvigorating its assessment of shareholder positive initiatives, including a possible tax-free spin off. Tom Hudson, Pirate’s representative on the Brink’s board, looks forward to working with Monitor to ensure that the company charts a course that will maximize the value of this great franchise.” Ed Cunningham, spokesman for the Brink’s Company, emphasized that the review of strategic alternatives is an “ongoing process” and that the company is “committed to conducting a dynamic review.” Asked about the timeframe for completion of the Monitor review, Cunningham said none had been disclosed. The press release issued by Brink’s said: There is “no assurance as to the outcome of the company’s re-examination of strategic alternatives.”