Cima is a technology-driven developer of automated cash handling devices that recognize, count, process, secure cash notes and coins. The company has extensive experience within cash handling automation with a strong focus on R&D. The Italian-based Group has a global customer base and approximately 120 employees. The Group has a track record of strong financial performance and in 2022 had revenue of approximately EUR 66 million.

"Our automated solutions, with SafePoint as the key product, has been a great success and continuing to grow this business is an important part of our strategy. With the acquisition of Cima and their complete solution, we have taken a significant step in expanding our offer of automated solutions. Together, we will combine our strengths and capabilities to provide enhanced solutions and value to our customers. Furthermore, Cima's sales network gives us additional growth opportunities and access to new markets," says Aritz Larrea, President and CEO of Loomis.

"By combining Cima's technological know-how and utilizing our extensive knowledge of our customers' processes, we secure our ability to innovate and continue to deliver customer-oriented solutions at the forefront. I look forward to welcoming the Cima team into the Loomis Group and embarking on this exciting journey of growth and innovation."

Strategic rationale

The acquisition of Cima strengthens Loomis' offer of automated solutions in line with the communicated strategy to add new technology and competencies to complement the existing business.

Cima brings a proven track record of innovation and R&D within cash automation and complements Loomis in terms of both product offering, technological solutions as well as geographic presence, with well-known and high-quality solutions.

Together, Loomis and Cima will combine their strengths and expertise to expand and further develop best-in-class cash-handling automation solutions with the customer value in focus.

Overview of the transaction

The initial purchase price amounts to EUR 132 million on a cash and debt free basis, with a potential earn-out of maximum EUR 17.5 million based on the EBITDA outcome for the financial year of 2024. The initial purchase price corresponds to an 8x EBITDA multiple based on the year-end 2022 financials. The total consideration, assuming full earn-out, of EUR 149.5 million is estimated to be below 8x EBITDA.

The acquisition can be funded through available cash and existing credit lines.

The business will be reported within the SafePoint (Automated Solutions) business line and consolidated into Loomis as of closing of the transaction. Closing is expected during the fourth quarter, subject to certain closing conditions. The management team of Cima will remain with the company in their current positions.

Including transaction and integration costs, the acquisition is expected to have a positive impact on the operating profit (EBITA1) and the earnings per share of Loomis in 2023. The contribution from the acquisition should be seen as an addition to Loomis' financial targets for the strategic period ending 2024.

1) Earnings before interest, taxes and amortizations

This press release is also available on the company's website, www.loomis.com.

July 18, 2023