BAX sale could bolster Brink's

RICHMOND, Va.--The Brink's Company's sale of its freight delivery unit, BAX Global, would "convert the company into a pure-play security Goliath," industry analyst Jack Mallon predicted. As Security Systems News went to press on Nov. 16, The Brink's Company issued a press release confirming reports of the $1.12 billion sale of BAX Global to Deutche Bahn. on November 15. "As a result, Brink's should be more focused on running one of the largest armored trucking and alarm operations in the country, if not the world," Mallon, of New York City-based Mallon Associates, added. The Deutche Bahn supervisory board approved the purchase at its Nov. 12 meeting, Rueters reported. The Brink's Company's plan to put Irvine, Calif.-based BAX up for sale was first reported last June. Resurfacing chatter of a pending sale on Nov. 7 sent Brink's stock climbing 9.9-percent to a new 52-week high. Stock speculations seemed to level off after Nov. 7 as investors waited for concrete news about the sale Several industry observers, including Mallon, believe the sale of BAX would allow Brink's to focus on its profitable home security division. "Selling BAX would be a big plus. It would allow Brink's to get rid of a major drag on the company. BAX has been losing money for many years. Although it is profitable at the moment, margins are well below the profit margins for [its two other divisions] armored cars and Brinks Home Security," Mallon said. As of Nov. 15, no one at Brink's was willing to discuss the sale. Calls to Brink's Home Security were referred to Brink's corporate headquarters in Richmond, Va. Calls to the corporate headquarters were not returned. At BAX, spokeswoman Marie Connell said, "We will not comment on rumors."