Devcon Spends $116 Million to Acquire 2 Security Providers
Devcon Int’l Corp., a company that a year ago was solely devoted to construction and concrete services, continued to deepen its entry into the electronic security market after acquiring electronic security services provider Guardian Int’l Inc. and Costal Security Co. Devcon is paying $65.5 million for the Hollywood, Fla.-based Guardian with USBX Advisory Services LLC and Lehman Brothers serving as financial advisors on the deal. A few days after announcing the Guardian deal, Devcon revealed it is also acquiring Boca Raton, Fla., installer Coastal Security Co. for $50.4 million.
Devcon started its move into the electronic security business by acquiring Adelphia’s security business in March. Just last month, Devcon sold off one of its construction-related businesses with the intent on focusing on its security business.
Harold Ginsburg, Guardian’s CEO, says his company and Devcon will create a large platform for customers in the Florida and New York markets, and further acquisitions will expand Devcon even more.
“I’m sure they’re after some more,” Ginsburg says. “They want to become a big player.”
Guardian, founded by industry veteran Ginsburg in 1993, services more than 40,000 alarm customers in the Florida and New York-metropolitan area and includes UL-certified central stations in Hollywood and New York City. Besides Guardian Int’l, it also installs and services systems under the Mutual Central Alarm Services and Stat-Land brand names.
Coastal Security, with $1.26 million in recurring monthly revenue, installs and monitors commercial and residential systems in South Florida. Coastal President Sheldon Katz will become vice president of Devcon’s security division under the deal.
Devcon Acquisition Corp., a wholly owned subsidiary, will merge into Guardian, though no decision has been made concerning the future of the Guardian brand name. Ginsburg says his future in the merged company hasn’t been determined, though he says he expects to stay in a position with the newly merged company. Ginsburg has more than 40 years of experience in the alarm industry.
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