In the wake of months-long shareholder activism, Brink’s Co. has approved the spin-off of its home security unit into a separate publicly-traded company.
The spin-off came from a review of strategic options that the company began in November, with the help of consulting company the Monitor Group, according to the Associated Press.
The spin-off, which is anticipated to involve a tax-free stock distribution to shareholders, is expected to be completed in the fourth quarter.
Brink’s Home Security, a provider of residential alarm services, had about $484 million in revenue last year. Brink’s Co. said it will continue to operate secure transportation and cash management division Brink’s Inc.
The company said it will use its current dividend policy until the spin-off takes effect, at which time Brink’s Co. (BCO) and Brink’s Home Security will decide on their own dividend policies.
Brink’s also said it reached a deal with New York-based hedge fund MMI Investments LP that includes expanding its board and nominating a MMI nominee as a director at its annual shareholder meeting.
The company will also nominate another MMI nominee to serve as a Brink’s Home Security board member after the spin-off. MMI withdrew its request to nominate directors at the annual meeting.
In November MMI nominated a slate of candidates for election to Brink’s board at its annual meeting. MMI, as well as shareholders Steel Partners II LP and Pirate Capital LLC, have previously called for a tax-free split-up of Brink’s.
