Evergreen NZ Holdings’ Armourguard Security looks to purchase ACM and merge the combined New Zealand Cash-in-Transit businesses into Armourguard Logistics Limited.
Evergreen announced on 28 March that it had reached a definitive agreement to purchase ACM New Zealand Limited (ACM) from Linfox Armaguard Proprietary Limited.
The transaction is subject to regulatory approvals, including by the New Zealand Commerce Commission (NZCC). Upon approval and completion, Armourguard Security and ACM plan to merge their respective Cash-In-Transit (CIT) operations into Armourguard Logistics Limited, a newly formed wholly-owned subsidiary of Evergreen (Armourguard Logistics).
The proposal for merger authorisation to be submitted to the NZCC outlines a planned merger of Armourguard Security’ and ACM’s CIT assets, liabilities, employees and operations into Armourguard.
“Although the requirements of the New Zealand cash logistics market are not enough to sustain both major players, cash nevertheless remains a critical component of New Zealand’s society and economy.”
Armourguard Logistics will be led by Armourguard Security CEO Shane O’Halloran and remain locally managed, continuing Armourguard’s 85 years of New Zealand security and CIT experience.
“The proposed merger represents a positive development in the management of cash logistics and wholesale cash distribution in New Zealand, and seeks to provide the stability, resiliency and future of the cash economy in New Zealand,“ stated Shane O’Halloran.
Cash usage in New Zealand has been in steady decline over the past two decades, which accelerated due to the impacts of the COVID-19 pandemic.
This has led to significant excess capacity within the New Zealand cash logistics services infrastructure, with Armourguard Security and ACM each struggling to support the rising costs of servicing the New Zealand cash economy.
Although the requirements of the New Zealand cash logistics market are not enough to sustain both major players, cash nevertheless remains a critical component of New Zealand’s society and economy.
Importantly, the Reserve Bank of New Zealand continues to support the use of cash as a form of payment accessible throughout New Zealand.
“The proposed merger shall give Armourguard Logistics the greatest opportunity, where possible, to support the ongoing employment and well-being of employees in the cash services sector, as well as meeting the needs of our customers and the community by building a more robust, sustainable and resilient nationwide cash logistics network in New Zealand,” said O’Halloran.
“It will also support the Reserve Bank of New Zealand’s continued focus on making cash a payment mechanism readily available to the public.”
In the announcement, Armourguard Security stated that it remains committed to providing its customers and partners with best-in-class service and its employees and communities with a healthy and safe working environment.
The New Zealand merger agreement comes several months after the Australian Competition & Consumer Commission (ACCC) authorised a merger in Australia between Linfox Armaguard Pty Ltd (Armaguard) and Prosegur Australia Holdings Pty Limited (Prosegur) on 13 June 2023. The first stage of integration of Armaguard and Prosegur sites took place in October 2023, with completion of the integration earmarked for mid-2024.
During the first few months of 2024, Linfox Armaguard has been involved in negotiations with banks around a rescue plan to bail out the Australian cash distributor.
