ASG Enters La. Market, Adds $248K in RMR With Acquisitions
BELTSVILLE, Md. — Each year, ASG Security makes it a goal to complete 10 to 12 acquisitions. With the back-to-back purchases of New Orleans-based USA Fire & Burglar Alarm and Mooresville, N.C.-based RSH Protection, the firm is on track to accomplishing that objective.
Completed on Nov. 16, the acquisition of USA Fire & Burglar Alarm marks ASG’s entrance into the Louisiana market. Prompted by the retirement of USA owner Brian Mahl, the deal brings in $180,000 in recurring monthly revenue (RMR). All of USA’s 35 employees will join ASG’s ranks.
Included in that list is well-known industry veteran Lou Sepulveda, who will serve as the vice president and general manager of the Louisiana branch. With 36 years of industry experience, Sepulveda, a published author of well-known security sales method books, has been a leader in sales techniques and dealer development for companies such as ADT, ITI and Security Associates Int’l (SAI). Having Sepulveda onboard sweetened the deal for ASG, according to ASG Security President and CEO Joe Nuccio.
“In our eyes, Lou’s world class,” he tells SSI. “He has his own consulting business and he’s very successful, but he’s taken the opportunity to grow that branch for us. We’re very excited that he’s developing it with us.”
Roughly 95% of the acquired accounts represent residential accounts; the remainder includes small businesses. With those numbers, the deal is reminiscent to ASG’s December 2010 purchase of TnT Security, which helped the firm enter into the Oklahoma market. Almost two years later, ASG has doubled the size of its footprint in the area, something the firm aims to do in Louisiana.
“We’ll go into Baton Rouge, and we’ll think about expanding into Lafayette at some point,” Nuccio says.
A few weeks prior to closing the deal for USA, ASG purchased RSH Protection, which provides access control, commercial doors, video surveillance, intrusion detection and fire alarm systems to commercial, residential and small business clients throughout North Carolina and South Carolina. The deal adds $68,000 in RMR to ASG. All employees, including owner Roger Park, will remain with the company.
“I’ve known Roger for a long time, and we’ve been talking for many, many years,” Nuccio says. “They have a nice commercial base that fits in perfectly with our Charlotte (N.C.) initiative. RSH is very big with NASCAR and some other great opportunities came out of this acquisition.”
With 2013 on the horizon, ASG will close the year with around $8 million in RMR, an increase of $1 million compared to 2011. Given the instability of the economy, reaching that number undoubtedly took much effort. How has the firm been able to continue its growth in such conditions?
“We’ve always counted ourselves as a very strong regional player, and also a really strong local player for service,” Nuccio explains. “We don’t ever want to get away from those roots. We have some A-list players on our team, and we’ve been very realistic in how we’ve looked at our business. Even with how hard it is out there, there is still a tremendous opportunity if you approach it the right way.”
Part of that plan includes taking a “feet on the street” approach, beefing up social media marketing strategy on Twitter, Facebook and LinkedIn and doing some broadcast advertising on television and radio.
Nuccio says he remains busy prior to ushering in 2013.
“We’re actually in the middle of a couple more acquisitions, so I think we’re going to finish 2012 off with a bang,” Nuccio says. “Going into 2013, we’re going to continue on that same theme of creating more organic sales, as well as enhancing all of the services that are available to our customer base.”
Ashley Willis is associate editor for SECURITY SALES & INTEGRATION magazine. She can be reached at (310) 533-2419.
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