Golden Gate Capital has agreed to acquire Hollywood, Fla.-based Devcon Security, according to Security Systems News. No financial terms were disclosed.
Devcon is a provider of installation, monitoring and related electronic security services. It had been publicly traded on the OTC bulletin board until deregistering its securities last October.
Update: Devcon has now confirmed the news. Press release below:
Devcon International Corp. today announced that it has completed the sale of the Company and all of its subsidiaries (“Devcon” or the “Company”) to Golden Gate Capital (“Golden Gate”), effective September 30, 2009. Devcon will continue to serve its customers without interruption. The closing of the transaction represents the culmination of a recapitalization process that began in October of 2008. Golden Gate provided the combination of both the highest consideration to shareholders and the optimal partnership for employees and customers moving forward.
Robert Farenhem, President and Chief Executive Officer of Devcon said, “We are delighted to have Golden Gate as a partner. The closing of this transaction will significantly strengthen Devcon’s presence in the electronic security marketplace. We will be seeking to expand our market presence and focus on growth. As the third largest electronic security company in Florida and the 14th largest electronic security company in the United States, we are well positioned to capitalize on the platform that has been created.”
John Gilligan, Principal of Golden Gate Capital commented, “We are excited to partner with Devcon’s existing management team to build a significant platform for future growth. With ample access to capital from our current fund, we believe Devcon is well positioned to take advantage of those growth opportunities. This investment demonstrates Golden Gate’s continued commitment to the security space, and we are happy that Devcon joins Pinnacle Security in our portfolio.”
Christopher B. Munday, a Golden Gate Operating Partner and Chairman/CEO of Pinnacle Security, will join the board of Devcon Holdings as Chairman and added, “We enthusiastically welcome Devcon as a part of the broader Golden Gate security portfolio and look forward to finding ways for both organizations to work closely together in this exciting area of growth. This strong platform also positions us perfectly to pursue additional opportunities in the Security space globally.”
About Devcon International Corp.
Devcon’s wholly-owned subsidiary, Devcon Security (http://www.devcon-security.com), is a leading provider of installation, monitoring and related electronic security services, currently monitoring more than 140,000 commercial and residential systems in Florida, New York City and Staten Island. Since February, 2005, Devcon has made 3 significant acquisitions of full-service electronic security services companies with significant concentrations throughout Florida and the New York Metropolitan region. Currently, Devcon Security Services Corp. is the third largest security monitoring and alarm company in Florida and the fourteenth largest in the U.S.
About Golden Gate Capital
Golden Gate Capital, headquartered in San Francisco, is a global private equity investment firm with approximately $8.0 billion of capital under management. Our investors include leading educational endowments, non-profit foundations, and selected financial institutions, entrepreneurs and managers. The firm’s charter is to invest in change-intensive and growth-oriented situations where there is a demonstrable opportunity to significantly enhance a company’s value. The Principals of Golden Gate Capital have completed approximately 140 such transactions aggregating to over $19 billion in enterprise value across all major sectors of the economy. Golden Gate Capital’s philosophy of building value over the long term affords our portfolio management teams the flexibility to pursue value creation opportunities without regard for artificial timing constraints such as pre-set hold periods.