Loomis AB (STO:LOOMB) has won the contract to service Tesco’s 3,700 ATM’s in a deal worth £20 million. The agreement covers Tesco’s remote ATM estate throughout the UK.
The agreement is the single largest new contract signed by Loomis since its IPO in 2008. Listed on the Nasdaq OMX Stockholm Stock Exchange, Loomis has a 160 year history of handling cash, primarily in valuables logistics. Among its other business activities, Loomis administers vaults and cash deposits for banks, replenishes ATMs and provides cash collection for retail.
The purchaser, Tesco (LON:TSCO), is currently suffering a depressed share price following an over-statement of expected profits, which resulted in the appointment of a new CEO, Dave Lewis, and the bringing forward of Alan Stewart’s start as Chief Financial Officer. The UK’s Financial Conduct Authority has notified Tesco that it has commenced a full investigation into the affair, which is also currently the subject of an independent review by Deloitte.