Dunbar Armored to be bought by The Brink’s Co. in $520M deal

A privately owned cash management company in Hunt Valley has a deal to be acquired by a competitor for more than a half a billion dollars.

Dunbar Armored Inc. has a deal to be bought by The Brink’s Co., a cash management and secure logistics firm based in Coppell, Texas, for $520 million in cash.

The combination of Dunbar, the fourth-largest American cash management company, and Brink’s, the second-largest, would create the largest such company in the world, Brink’s CEO Doug Pertz told investors on a call Thursday morning.

“Dunbar has been in business … for over three generations,” said Pertz. “It has a great reputation in the marketplace. It has a great market position. And … combining with Brink’s, which has been in business for over 159 years and is one of the strongest brands in this business on a global basis as well, we’re combining two cultures to create the leading American company in the cash management business.”

Brink’s expects the transaction to close by the end of 2018, if regulators approve and closing conditions are met. Until the deal is approved, both companies will continue to operate as competitors in the marketplace, said Pertz.

Brink’s also expects to find between $40 and $45 million in cost savings because of the purchase, mainly because of route density, branch overlap and administrative efficiencies. Pertz said the savings would be achieved over a three-year period after the acquisition, with most coming in the first two years.

Dunbar has roughly 5,400 employees and operates 78 branches, according to Brink’s. It has more than 1,600 armored trucks in its fleet. Over the past 12 months, Dunbar generated about $390 million in revenue, with roughly $43 million in adjusted EBITDA.

“My father started this business and grew it through his hard work and ability to attract and retain great employees and loyal customers,” said Kevin Dunbar, chief executive officer of Dunbar Armored, in a statement announcing the intended sale of the company. “We are delighted with the Brink’s transaction and are confident that Brink’s will continue the Dunbar successes. At the end of the day, our business is all about our great employees and loyal customers, and we are ready to entrust Brink’s with both.”

Dunbar Armored, which recently celebrated its 62nd anniversary, was founded in 1956 in Baltimore, as Federal Armored Express, by James L. Dunbar. He modeled the company on the Connecticut armored car company Mercer & Dunbar, which his father had co-founded in 1923. Federal Armored Express in 1993 acquired the Connecticut company.

In the transaction, Dunbar is being advised by Baltimore investment banking firm Bengur Bryan and by law firm DLA Piper. Brink’s is being advised by Bank of America Merrill Lynch and Troutman Sanders LLP.