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Evergreen NZ Holdings’ Armourguard Security to purchase ACM New Zealand Limited and merge the combined New Zealand cash-in-transit businesses into Armourguard Logistics Limited

Evergreen NZ Holdings (Evergreen) is pleased to announce that it has reached a definitive agreement to purchase [100% of the common shares of] 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 shall 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 Logistics. Armourguard Logistics shall be led by Armourguard Security CEO Shane O’Halloran and continue to be managed locally leveraging Armourguard’s 85 years of New Zealand security and CIT experience.

Shane O’Halloran states, “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.”

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 decline in cash usage has led to significant excess capacity within the New Zealand cash logistics services infrastructure. Armourguard Security and ACM have each struggled to support the rising costs of servicing the New Zealand cash economy.

The requirements of the New Zealand cash logistics market are simply not enough to sustain both major players. However, cash remains a critical component of New Zealand society and its market economy. Importantly, the Reserve Bank of New Zealand continues to support the use of cash as a form of payment accessible throughout New Zealand. This acquisition will strengthen continued cash access and usage across the country.

“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. It will also support the Reserve Bank of New Zealand’s continued focus on making cash a payment mechanism readily available to the public.” O’Halloran says.

Armourguard Security remains committed to leading the New Zealand cash economy by providing its customers and partners with best-in-class service and its employees and communities with a healthy and safe working environment. JULY 28, 2022

 

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