Co-operative Group to sell Sunwin Services

The Co-operative Group is eager to sell Sunwin Services, its cash handling division, to raise the funds to facilitate its purchase of a portfolio of Lloyds’ bank branches.

Advisers from Buckingham Corporate Finance have been brought in to secure a new owner for Sunwin Services, which provides secure transport of money for shops and cash dispensers, IT services and fire security.

While a price for the business - which has a 1,500-strong workforce – is uncertain, industry experts have placed its value in the region of £30m to £40m. It is expected that Sunwin will attract other security and facilities management firms and private equity buyers.

Lloyds is still in negotiations to sell its 632 bank branches to the Co-op, having fallen behind schedule. The outline of a deal was due to be ready by the end of this month. The Co-op emerged as Lloyd’s preferred buyer for the branches in December.

Lloyds is disposing of a large chunk of its bank branches to satisfy the conditions by the European competition regulator on the £20 billion in state aid it received at the onset of the credit crunch.

After its purchase of Britannia in 2009 the Co-op operates 343 branches and has 6.5 million customers, who hold current accounts, credit cards and mortgages.

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