Security Equipment Co. Builds Footprint in Tennessee With Acquisition
MCMINNVILLE, Tenn. — Security Equipment Co. Inc. (SEC) based here has purchased Professional Security Consultants & Design (PSCD) for an undisclosed amount.
Operating since 1977, SEC is a mid-sized, independent, low voltage, security alarm company, providing a wide variety of installations and services throughout middle and eastern Tennessee. The firm wasn’t necessarily seeking to acquire, but reconsidered when PSCD President Mike Walker approached SEC executives about the deal. Because SEC had operated a branch office in Knoxville for a number of years, it made sense for the company to merge with PSCD, SEC President Ken Roberts says.
“After several discussions with Mike, we decided that an arrangement could be reached that was mutually beneficial,” he tells SSI. “PSCD and our branch were perfectly compatible, so it was a logical expansion for us.”
PSCD provides a wide range of security consulting and design services for access control, and CCTV solutions to clients in eastern Tennessee. Roberts declined to state how much recurring monthly revenue (RMR) the deal brings to SEC, but says the acquisition brings in excess of 300 active accounts to the company.
“Virtually all of the accounts are institutional, commercial or industrial,” he explains. “Very few are residential.”
Some of the new customers that SEC has picked up include the University of Tennessee Knoxville, the Knoxville Expo Center and the Knoxville Civic Auditorium and Coliseum. One of the benefits for former PSCD customers is that they will now have access to fire alarm installation services, which PSCD did not offer. SEC also has a strong background in intercom and school communications systems that new clients can utilize.
For 2014, SEC plans to broaden its business in eastern Tennessee organically through sales and customer service, not necessarily through acquisitions.
“We are sales- and service-oriented; acquisitions are not a primary business goal,” Roberts says. “If the opportunity for additional acquisitions should appear, we would consider each one on an individual basis.”
Steve Rubin of Davis Mergers and Acquisitions Group assisted with this sale.
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