It all began when the unsuspecting night receptionist in Environment Minister John...[ more ]... Garda World 'on Brink'

MONTREAL - Entrepreneur Stephan Cretier said yesterday his Garda World Security Corp. will spend the rest of fiscal 2008 digesting the $400-million takeover of California's ATI Systems International and delivering the promised $30 million in synergies on time.

In February, the start of fiscal 2008, 12-year-old Garda swallowed ATI in its biggest-ever deal. ATI is a "cash logistics" firm with annual sales of almost $600 million, 7,000 staff and 1,500 vehicles in 35 states. It serves banks, insurance companies and retailers.

ATI president Richard Irvin will head all Garda's U.S. cash-management business -- North America's second biggest player in that sector after Brink's.

"It's our last big deal for some time and we're going to integrate quickly," Mr. Cretier said after Garda released its fourth-quarter results. "But the security business is constantly changing. We're now on Brink's tail and staying alert for opportunities."

Top management has been so busy with expansion that Garda's strategy has not been made clear enough, he said. Interest costs will put pressure on earnings this year, but Garda will generate the cash flow to reduce its $600 million of debt -- assumed mostly for ATI -- by $40 to $50 million.

"Fiscal 2008 revenue will hit $1.2 billion with ATI for 10 months or an annualized $1.4 billion and I don't have to run after new equity," he said. His own equity stake of 25 per cent will remain unchanged.

ATI provides "smart" safes to retail clients such as convenience stores. ATI trucks pick up cash at frequent intervals to reduce the "float" the store needs. This is a fast-growing business, though margins are not always higher than the financial services sector, Mr. Cretier said.

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