GTCR has signed an agreement to sell Protection 1, a security alarm monitoring company, to Apollo Global Management. The transaction is expected to close in the second quarter of 2015.
Protection 1 provides installation, maintenance and monitoring of security systems for residential, commercial and national accounts. The company serves nearly two million customers which makes it one of the largest providers of security alarm monitoring services in the United States. The company has 3,500 employees, five monitoring centers, and 70 office locations. Protection 1 is headquartered southwest of Chicago in Romeoville, IL (www.protection1.com).
GTCR acquired Protection 1 in 2010 in partnership with security industry veteran Tim Whall. The Protection 1 transaction was the third time in the past 15 years that GTCR and Mr. Whall had partnered on a deal. They previously acquired Cambridge Protection Industries and HSM Electronic Protection Services.
During the term of GTCR’s ownership the firm and Mr. Whall made a number of operational improvements, and expanded into new residential and commercial sales channels through both strategic acquisitions and select additions to its management team.
“The operational improvements and growth initiatives that Tim and the entire Protection 1 team accomplished over the last five years represents another excellent example of GTCR successfully executing The Leaders Strategy,” said GTCR Managing Director David Donnini. “Tim and the entire Protection 1 team have built a tremendous platform that enjoys industry-leading operating metrics, exceptional customer service and attractive growth prospects.”
GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $11 billion in assets under management. Since its inception in 1980, GTCR has invested more than $10 billion in over 200 companies. The firm is based in Chicago (www.gtcr.com).
“We’d like to thank GTCR for their commitment and support in transforming Protection 1 over the last five years,” said Mr. Whall. “GTCR has been a great partner, and extremely supportive of the investments made to improve customer service and achieve long-term growth.”
Morgan Stanley and Raymond James served as financial advisors to Protection 1 and GTCR.
2015 PEPD • Private Equity’s Leading News Magazine • 5-20-15
