COPENHAGEN, Denmark, March 20, 2001 (PRIMEZONE) -- Group 4 Falck A/S (CSE:GROUP) takes over BRE Services Assistance Sp. z o.o., a Polish provider of cash in transit services, cash process and guarding. The company, which has a turnover of DKK 80 million and some 900 employees, is owned by BRE Bank S.A., a Polish bank.
The acquisition brings Group 4 Falck's combined turnover in Poland to approximately DKK 500 million within safety and security services and increases the staff to 8,600 full-time and part-time employees.
The acquisition gives Group 4 Falck a leading position in the market for cash in transit and cash processing in Poland and a share of just over 30% of the market for outsourced services.
The acquisition is in line with the Group's strategy for the coming three years, namely to be a very active consolidator in the European market for security services. With the acquisition of BRE Services Assistance, Group 4 Falck has strengthened its position as the largest security services provider in Poland.
BRE Services Assistance
BRE Services Assistance's head office is in Warsaw, and the company has operations in 15 of Poland's largest cities. About 40% of turnover comes from cash in transit, cash processing and guarding services for the parent company, BRE Bank, while the remaining approximately 60% comes from a number of other customers.
Just over 50% of turnover comes from cash in transit services, while 25% comes from cash processing. Guarding services account for the rest of turnover.
The activities of BRE Services Assistance will be integrated in Group 4 Falck's other activities in Poland.
The Polish Market for Security Services
The Polish market for cash in transit and cash processing is expected to surge in the years to come as the Polish authorities allowed banks to outsource these jobs last year.
The acquisition of BRE Services Assistance gives Group 4 Falck a unique platform for developing the cash processing segment, in particular, a segment not previously targeted in Poland by Group 4 Falck.
The Polish market for security services boomed in the early 1990s with more than 12,000 registered companies - mainly small units. New legislation from 2000 has made it more difficult to get a license to provide security services, and the number of service providers is now estimated to be 2,500. The Polish security services market is estimated to have a value of approximately DKK 6 billion.
Price and Goodwill
The price for BRE Services Assistance Sp. z o.o. is DKK 38 million including purchase costs and restructuring, of which goodwill accounts for DKK 39 million.
It is expected that the acquisition will affect the earnings of Group 4 Falck A/S in 2001.
The acquisition is subject to regulatory approval.
Group 4 Falck A/S is the second largest security services provider globally. In addition, the Group provides related services within the safety and Global Solutions (private-public partnerships) area. The Group operates in more than 50 countries and has approximately 125,000 employees.