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| Devcon acquires Coastal Security Company Devcon International Corp. announces that Devcon Security Holdings, Inc. has acquired all of the outstanding capital stock of Coastal Security Company in a cash for stock transaction valued at approximately $50.4 million. Coastal, headquartered in Boca Raton, Florida, provides retail electronic security services to commercial and residential customers principally in South Florida, and wholesale monitoring service to dealers throughout the United States. Through the monitoring and servicing of more than 165, 000 security systems, the total contractually recurring monthly revenue to be acquired is approximately $1.26 million. Sheldon Katz, President of Coastal, will be staying on with Devcon's Security Division as a Vice President, and will continue to oversee the Company's Boca Raton-based wholesale monitoring operation as well as be very involved in the Division's growth initiatives, particularly in the commercial and residential markets. In order to obtain the necessary funds to complete the transaction, Devcon Security Holdings, Inc. and Devcon Security Services, Inc. have entered into a three year $70 million revolving credit agreement and a 120-day $8 million bridge loan with CapitalSource Finance LLC. Approximately $23.6 million of the new revolving credit facility will be used to repay existing borrowed debt and costs associated with the company's current loan facility which will be cancelled as part of this transaction. write your comments about the article :: © 2005 Construction News :: home page |