BOSTON – RPAFA Investors, an investment vehicle of Riverside Partners, a private equity investment firm based here, has purchased Alarm Funding Associates from Keyser Capital, a subsidiary of Sinclair Broadcasting Group (NASDAQ: SBGI), for $200 million.
The West Chester, Pa.-based alarm company will net Sinclair $70 million in pre-tax net cash proceeds, 6.7x the $10.5 million Keyser initially invested, according to the company.
“We are pleased to report an annualized return of approximately 25% on our investment in Alarm Funding,” says David B. Amy, vice chairman of Sinclair. “Although an accretive investment for us, the sale of the alarm business, which was not part of our core operations, provides us a significant divestment opportunity.”
Amy says after-tax net cash proceeds will be approximately $56 million, or 60 cents per share.
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