Account acquisition #157 for ADS
NASHVILLE, Tenn.--ADS president Mel Mahler beefed up his Alabama operations with the acquisition of 700 accounts from Ultimate Security of Huntsville in December.
Mahler did not disclose terms of the deal. ADS has four offices in Alabama, including one in Huntsville; the accounts will be absorbed into that operation.
Acquiring blocks of accounts is not a new M.O. for Mahler. "We've had a number of partners like that over the years," he said. "We've made 157 acquisitions over the last 15 years where we've bought accounts and folded them into the local office."
Richie Burns, owner of Ultimate Security, did not return several calls before press time. However, Mahler said that Burns is getting into the construction market and will use capital from this sale to buy property and build homes. The Huntsville metropolitan area has a population of approximately 400,000 people, is home to NASA and has a growing high tech sector. Much home building has accompanied that growth.
"Richie's going from being a vendor to becoming a contractor himself in the same market, from installing security systems in a home someone else built to installing security systems in houses he builds," he explained.
The transition from one company to the other, Mahler said, will be trouble-free for customers. "It will be easy because we're an operating company and have technicians and an office. Customers can still call Richie, but they know who we are too. They'll know they aren't being neglected."
Mahler said he looks forward to buying more accounts from Burns in the future.
ADS has 13 branch offices and more than 57,000 accounts in Alabama, Tennessee, Georgia and Kentucky.
A yearlong rebranding of all 13 offices under the ADS name was completed at the end of last year.