NEW BRITAIN, Conn. — Stanley Works is buying Sonitrol from a group composed of Carlyle Venture Partners, Wachovia Capital Partners and Spire Capital Partners, plus selected members of Sonitrol management for $275 million cash.
Berwyn, Pa.-based Sonitrol provides security monitoring services, access control and fire detection systems to commercial customers in North America. The company has two monitoring centers and a national multichannel distribution network.
Sonitrol, estimated to be the 8th largest electronic security company in the United States, brings a strong brand, well documented capabilities in audio-verified monitoring and a substantial national account base to Stanley’s Convergent Security Solutions (Stanley CSS) platform.
“Stanley Works is refocusing their business on a recurring revenue model. They want to diversify from their core tool business,” Sandra Jones, founder of the consulting firm Sandra Jones and Co., tells SSI. “Sonitrol’s recurring revenue has very strong value because of low attrition. The average customer is with them for 13 years. That is significantly higher than the rest of the industry.”
Sonitrol, with revenue totaling about $110 million, will report into Stanley CSS business, which had 2007 revenues approaching $600 million and includes the former HSM Electronic Protection Services. The boards of directors of Stanley and Sonitrol have approved the transaction, which is subject to regulatory approvals and other customary conditions. The acquisition is expected to close during the third quarter of 2008.