ATM agreement between Cardtronics and Co-op Food
Wednesday September 10 2014
Recently announced long-term agreement to cover nearly 2,000 ATMs in UK Co-op Food stores starting early 2016
The UK-based arm of Cardtronics has entered into a seven-year exclusive agreement to operate around 1,800 high-transacting ATMS located in Co-op Food stores across the UK. Co-op Food, one of the largest grocery retailers in the UK, is a division of the Co-op Group.
Starting in early 2016, Cardtronics will take on the operation of the upon expiration of the existing ATM contract. In addition, Cardtronics has the right with immediate effect to install and operate ATMs in hundreds of Co-op Food locations that do not currently have an ATM, as well as in any new Co-op Food Store.
Cardtronics will also acquire the Sunwin Services Group ("SSG"), a subsidiary of the Co-operative Group. SSG's primary business is providing secure cash logistics and ATM maintenance to the Co-op Food ATM estate.
SSG also provides these services and manned guarding services to other Co-op Group entities, as well as external customers, such as Cardtronics, which has been a customer of SSG for secure cash logistics services for a number of years.
"The Co-op Food stores' ATM estate is a high-quality portfolio and is one of the highest transacting off-branch estates in the UK market,” commented Cardtronics Europe managing director Jonathan Simpson-Dent.
Purchase consideration of approximately £35 million will be paid to the Co-op Group in stages upon the passage of time and fulfilment of certain performance conditions.
Acceleration in timing of the transfer of the Co-op Food ATM estate to Cardtronics could result in an additional £6.5 million in consideration being paid to Co-op Group. Cardtronics will acquire ownership of SSG upon the close of this transaction, which is expected to occur in November 2014.