Prosegur, Compania de Seguridad SA
Founded in 1976, Prosegur (XMCE:PSG, Financial) offers its customers various security solutions, including manned guarding, cash transit and alarms. Though listed in Spain, Prosegur earns a majority of its operating profit in Latin America, most notably Brazil and Argentina. The company’s other primary profit centers are its home market of Spain and, to a lesser extent, other European markets. Prosegur is controlled by its founding family, who we believe are competent operators, reasonable deal-makers and in the habit of maintaining a conservative financial position. Apart from well-publicized macroeconomic headwinds in its Brazilian business, the company is seeing a reasonable recovery in Spain and other parts of Europe. All told the company remains very profitable and continues to produce attractive returns. We expect that improvements in Europe, an eventual recovery in Brazil and expansion opportunities into new geographies will continue to produce organic and inorganic growth opportunities for Prosegur for years to come.
From Third Avenue Management (Trades, Portfolio)'s fourth quarter 2015 International Value Fund commentary.
