CHICAGO, January 16, 2007 – GTCR, one of the nation’s leading private equity firms, announced today the closing of the sale of HSM Electronic Protection Services, Inc. (“HSM” or “the Company”), a leading provider of security monitoring services in the United States, to The Stanley Works (“Stanley”) for $545 million. HSM provides design, installation, maintenance, and monitoring services for electronic security systems to commercial and residential customers. GTCR acquired HSM in 2004 from Honeywell International.
HSM marks the second highly successful partnership between GTCR and security industry veteran James Covert, who previously worked with GTCR to build Cambridge Protection Industries (“Cambridge”). Operating primarily through its SecurityLink brand, Cambridge provided electronic security services to more than one million customers. Cambridge was ultimately sold to ADT for approximately $1 billion in cash.
“HSM has been another rewarding experience with GTCR,” said Covert. “We have achieved the goals we set when we acquired the business, and we believe Stanley represents a good home for the Company as it continues to evolve.”
GTCR Principal Collin Roche added, “Partnering with leading executives to acquire and build businesses is the core of GTCR’s investment strategy. In addition, we have a long history of success in corporate carve-out opportunities such as HSM and Cambridge, where we can add world class management like Jim Covert and his team to established operations.”
Lehman Brothers provided financial advisory services to GTCR and HSM on the transaction, and Kirkland & Ellis provided legal advice.
Founded in 1980, GTCR Golder Rauner, LLC is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to acquire and build companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $8 billion of equity capital invested in a wide range of companies and industries. More information about GTCR can be found at www.gtcr.com.
HSM Electronic Protection Services, Inc. is the largest privately held commercial electronic security company in the United States with 50 offices servicing over 80 of the country’s largest metropolitan markets. HSM designs, installs and services security systems for both commercial and residential customers. HSM represents a national network of resources, state-of-the-art technology, and a culture dedicated to excellence; where its employees have the training, the equipment, and the processes they need to deliver the finest solutions for the needs of its customers. HSM provides its customers with the best of both worlds—a local company with national resources–and one of the most trusted names in security serving over 175,000 customers. For more information please visit www.hsmsecurity.com.