Brink's To Restructure Netherlands Operations, Cut 600 Jobs - Quick Facts

(RTTNews) - Brink's Co (BCO), a provider of secure transportation and cash management services, Friday announced a plan to restructure its Netherlands operations in response to a loss of business with Rabobank, its largest customer in that country.

As a result, Brink's expects to incur a charge of $16 million to $22 million against third-quarter GAAP earnings. The restructuring plan includes the potential closure of three branches and a workforce reduction of about 600 employees.

In 2013, the Netherlands operations generated about $120 million of revenue at an operating margin rate that was slightly above the company average. Upon completion of restructuring activities, the remaining business is expected to generate annual revenue of about $40 million, primarily from retail customers.

In 2011, the country's three largest banks -- Rabobank, ING Bank and ABN AMRO -- with the support of the central bank of the Netherlands, founded a collaborative entity known as Geldservice Nederland B.V. (GSN). GSN has provided money processing services for the three banks since 2011. Brink's currently provides all ATM managed services to Rabobank. In July 2015, GSN will provide these services to Rabobank.

Brink's challenged the validity of the GSN entity, based on antitrust regulations. The challenge was unsuccessful.

The potential loss of business in the Netherlands was considered prior to the company's July 24 disclosure of its goal to achieve a non-GAAP segment margin rate of 8% by the end of 2016, and the goal remains unchanged.