Brink’s Company: Activists push for a spin-off

Case Solution

Suraj Srinivasan, Aldo Sesia, Amy Kaser
Harvard Business School ()

The case investigates the decision by security services group Brink’s Company to separate its home security division from the rest of the company. The decision followed intense pressure on the company from three activist hedge funds who believed that Brink’s was chronically undervalued and that the individual companies were worth more than the combined company. The company opposed the decision for more than a year before agreeing to the split. The case follows the reasoning of the company and each of the investors. It also describes actions taken by the company to convince its shareholders of the merits of cohesion in the company, as well as actions taken by activist investors to attract the attention of management, board members, and other investors. The business areas of Safe Transportation and Home Security Oversight are described from both a business strategy and a financial standpoint in order to analyze the value potential of various value enhancement options.

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