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Brink's to spin off home security unit, brings appointees of investment firm to both boards

Brink's to spin off home security unit, brings appointees of investment firm to both boards

The Brink's Co. said Monday it will spin off its namesake home security unit, following months of pressure from shareholders, and expand its board to accommodate the nominees of a shareholder firm.
Brink's shares rose 4.9 percent, or $3.16, to $67.52 in midday trading.
Brink's will appoint an MMI Investments LP nominee as a director, and recommend another MMI nominee to serve on its Brink's Home Security board.
In return, MMI withdrew a request to nominate its own directors at the annual meeting, the company said. MMI had criticized the Brink's board last week and made its own board nominations.
Richmond, Virginia-based Brink's said it would continue to operate Brink's Inc., its secure transportation and cash-management unit.
There isn't much overlap between the two entities, said Edward Cunningham, director of investor relations and corporate communications. He said the spinoff would "provide incentives for management and employees more closely aligned with shareholders who choose to invest in that company."
Cunningham said BHS employs approximately 3,600 workers and the parent company employs about 54,000. He said Brink's does not expect "any material change" to the number of employees.
"One of the potential benefits behind the spinoff of any business is the opportunity to become even more sharply focused on the market it serves," Cunningham said.
The company announced in November 2007 that it had hired the Monitor Group, an international consulting firm, to help the board evaluate strategic options. The board also received updated analyses from Morgan Stanley.
Brink's Home Security, one of the largest residential alarm companies in North America, will be spun off in the fourth quarter, the company said. Brink's said shareholders would receive a tax-free stock distribution from the new company.
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http://www.brinkscompany.com


Updated : 2021-08-06 11:55 GMT+08:00