The Georgia security company considered a lot of other matches before finding two that really fit.
KENNESAW, Ga.—In 2011, Loud Security considered making as many as nine acquisitions, but ended up turning them all down. But now, with 2012 barely under way, Loud has made two acquisitions in its backyard.
What clinched the recent deals, according to John Loud, president and owner of the regional security company based here, is that “we found two situations that are really wonderful matches for us.” The other opportunities last year weren’t a good fit, he told Security Systems News.
Early in January, Loud Security acquired Signature Alert, a small family-owned security company with about 200 mostly residential accounts located in Canton, Ga., in a neighboring county about 15 minutes north of Loud Security, Loud said. Family members wanted to shift their career focus, he said.
“They looked for the right company to make a match and we were a close local company so they decided to [choose us],” Loud said. “We have lots of business in that county.”
Then, last week, Loud Security, a Honeywell First Alert Professional dealer, acquired about 400 accounts from another nearby company, Due West Security of Marietta, Ga.
“They’re a perfect fit. We have so many locations that are so common to each other, it’s a wonderful match,” Loud said of the Feb. 23 deal.
Among the factors that made the deal so appealing is that it’s a good “fill-in for where we have most of our subscriber base,” said Loud, who said his company now has about 5,800 accounts, about 70 percent of them residential.
Loud Security serves the Greater Atlanta area. The fact that both acquisitions, about which terms were not revealed, were in nearby locations was a plus. “With the price of gasoline going where it’s going, I would certainly rather drive a few minutes … than half an hour to go to another area,” Loud said.
Loud said most of Due West’s accounts are residential but the deal also included restaurants, pharmacies, nightclubs and a prominent golf course. He said having those commercial accounts should help boost residential business.
“People see us at homes, and when they see us at businesses even more frequently, when they’re going to certain restaurants or when they’re golfing, it kind of is a branding reinforcement for Loud Security,” he said.
George Bowers, the owner of 13-year-old Due West with his wife, Linda Bowers, told SSN they decided to go with Loud because “we liked what he had to offer as far as good service for our customers.”
He said he plans to continue to work the low-voltage side of the company but now hopes to have more time for golf.
Loud Security also made a number of acquisitions in 2010.
by: Tess Nacelewicz
Wednesday, February 29, 2012
Read the original article at securitysystemsnews.com.