Starboard Sends Letter To Brink CEO; Outlines Components Operational Turnaround

(RTTNews) - Starboard Value LP the largest shareholder of The Brink's Company (BCO), announced that it has increased its ownership stake in Brink's to approximately 12.4% and has delivered a letter to Brink's CEO, CFO and Board of Directors.

In the letter, Starboard outlines Brink's history of poor performance and missed execution as well as the compelling opportunity to improve operating performance and create substantial shareholder value.

Starboard noted that it looks forward to continuing a constructive dialogue and cooperative relationship with senior management and the Board.

Starboard said that it believes Brink's can massively improve the operational efficiency of its CIT and CMS businesses, which would substantially improve margins, while also allowing Brink's to accelerate revenue growth by serving its customers more effectively and consistently.

According to Starboard letter, a comprehensive turnaround will include not only technology and route logistics improvements, but also substantial reductions in overhead expenses, a more incentive-based compensation structure for branch- and field-level employees, and a focus on eliminating the costs that do not drive value for customers, such as corporate aircraft and multiple US headquarters.

Implementing this plan, however, will require substantial expertise as well as a concerted effort to learn from the successful turnarounds implemented by Brink's peers, and from Brink's past mistakes.

Starboard believes that successfully executing on a comprehensive operational improvement plan should increase Brink's EBITDA by more than 60% over the next 12-18 months.