Brink's starts to spin

Thursday, August 21, 2008

IRVING, Texas-In preparation for its spin-off from The Brink's Company, Brink's Home Security has leased additional office space and is hiring more staff.
"We're augmenting administrative staff as part of our spin-off, to replace functions previously provided by The Brink's Company," explained Dave Simon, spokesman for Brink's Home Security, in an email interview.
No exact date has been announced for the spin-off that is scheduled to take place before the end of the year. Analysts who follow the company surmise that a likely time would be in late October or early November.
Brink's recently leased 80,190 square feet of office space at 4600-4650 Regent Boulevard in Irving. "We are still growing revenue and profits at 10 percent rate. This requires incremental headcount in many functions," Simon added.
During its Aug. 15 investor call, The Brink's Company CEO Michael Dan said, "the process for the spin-off is on track." He said that the decision to rebrand Brink's Home Security (three years from now) was "thorough and detailed and ... involved analysis of many complex issues that have strategic, operational, tax, and financial and capital market implications." He added that the decision was unanimously approved by the board.
Dan also noted that The Brink's Company is giving Brink's Home Security a $50 million cash injection and BHS will begin as a new company with no debt. "Given The Brink's Home Security team's highly successful track record in building their business from the ground up, I am confident that they have the financial resources and the management talent to trade another powerful brand in the security industry," Dan said.