GE Capital, one of four units of General Electric Company, has sold its entire stake in Safe Security, one of the US’s largest security alarm companies, to Los Angeles-based private equ
GE Capital, one of four units of General Electric Company, has sold its entire stake in Safe Security, one of the US’s largest security alarm companies, to Los Angeles-based private equity firm Rustic Canyon/Fontis Partners.
As part of the transaction, Bank of America has provided a USD25m senior credit facility. Rustic Canyon/Fontis Partners has invested an undisclosed amount of new equity capital in Safe Security and has assumed a majority ownership position. Safe Security’s founder and chief executive Paul Sargenti also will retain a significant ownership interest.
‘This transaction marks a new beginning for Safe Security, one that will build upon a solid foundation, unleash the company’s growth potential and provide us with an ability to offer an even wider array of quality products and services to our customers nationwide,’ says Sargenti, who founded the company in 1988. ‘By enhancing our financial flexibility, Safe Security will be in an excellent position to execute on its long-term growth plan, which includes geographic expansion and strategic acquisitions.’
‘We are excited to be collaborating with Paul and his experienced and highly motivated management team,’ adds Gabrielle E. Greene, general partner of Rustic Canyon/Fontis Partners. ‘We believe the injection of our resources and expertise will help to uniquely position Safe Security for growth.’
Safe Security is among the largest security alarm companies in the US, with operations in 44 states. It is involved in purchasing, financing and servicing residential and commercial security alarm monitoring contracts, as well as installing alarm systems.
Recent initiatives have included software upgrades throughout the enterprise, consolidation of monitoring stations, an improved service infrastructure and a broadened installation capacity.
