Loomis continues European expansion with purchase of Ziemann31st January 2019
Loomis has announced its intended acquisition of Ziemann, a domestic cash handling service, for €160 million.
For a number of years, Prosegur has been the only national carrier in Germany, competing with many regional carriers, but this latest acquisition from Loomis should allow the carrier to service the whole country with 64 sites. As the largest carrier in Europe – servicing a number of countries including France, Spain, Belgium and the UK – Loomis are well placed to compete with Prosegur and drive improvements in service offerings as well as more competitive pricing.
Loomis entered the market in January 2018, announcing its acquisition of cash-in-transit firm KÖTTER. This isn’t the first time Loomis have expanded capability by acquisition and partnership: they recently announced a partnership with Swiss-based Sonect, acquired CCV in Chile and CPoR in France, as well as Cobelguard in Belgium.
Loomis clearly has an aggressive expansion plan for Europe, and appears to be prioritizing Germany and growing its footprint in Europe’s economic power-house. This follows the general theme in the global CIT market, where 2-3 of the “big four” tend to operate in any given market.
In a press release on Loomis’ website, President and CEO of Loomis, Patrik Andersson explained:
The German cash market is large and cash in circulation is growing. We also see that outsourcing of cash management services from the bank system to cash specialists, like Loomis and Ziemann, has been accelerating in recent years. Ziemann is a large and operationally very solid cash handling business with a competent and innovative leadership team. These factors combined with Loomis know-how in cash handling, cash recycling and value added solutions make us believe that time is right to invest further in Germany and lead the transformation of the German cash eco system.Statement From Patrik Andersson | Loomis President and CEO
As with all mergers and acquisitions, merchants who currently have operations with Loomis or Ziemann need to carefully monitor their arrangements to make sure they receive any resulting benefits. Consolidation isn’t always necessarily a bad thing for merchants, although there is always the ongoing concern that less competition will mean higher prices and poor service levels for merchants. Loomis and Ziemann appear to have complementary skills and this acquisition may result in expanded product offerings and service capabilities for many merchants operating in Germany.
For multinational merchants operating across Europe, this expansion opens up the possibility of having all sites serviced by Loomis. This consolidation of contracts and points of contact could result in significant efficiencies, as well as allowing merchants to leverage the economies of scale aspect of servicing more stores in order to secure more competitive pricing.