BrinkÃ¢â‚¬â„¢s Home Security: What comes first?
IRVING, Texas--Sometime in July 2009 BrinkÃ¢â‚¬â„¢s Home Security will announce its new name and begin the rebranding process, but dealers, investors, and the general public shouldnÃ¢â‚¬â„¢t expect a whole lot more to change with BHS in the near future, said Bob Allen, president of BrinkÃ¢â‚¬â„¢s Home Security, in an Oct. 3 interview with Security Systems News.
Ã¢â‚¬Å“WeÃ¢â‚¬â„¢ve delivered solid results over the years, weÃ¢â‚¬â„¢ve got a very experienced team across management, as well as employees, and weÃ¢â‚¬â„¢ve had a very solid strategy over the years. Nothing is going to change moving forward in that regard,Ã¢â‚¬Â Allen said. Ã¢â‚¬Å“WeÃ¢â‚¬â„¢ll have the same team and the same strategy that got us where we are today.Ã¢â‚¬Â
He noted that BHS has three years to rebrand and thatÃ¢â‚¬â„¢s Ã¢â‚¬Å“a very adequate time frame to make it happen. WeÃ¢â‚¬â„¢ll invest very heavily in seeding our new brand and weÃ¢â‚¬â„¢ve got some very good partners working through a very comprehensive program to help us,Ã¢â‚¬Â Allen said.
When Security Systems News went to press in early October, BrinkÃ¢â‚¬â„¢s Home Security was preparing for Oct. 21, the date of record for the spin-off, and Oct. 31, the date BrinkÃ¢â‚¬â„¢s shareholders will receive one share of BHS Holdings common stock for each share of BrinkÃ¢â‚¬â„¢s common stock they own at the close of business on Oct. 21.
BHS management was also preparing for a three-week Ã¢â‚¬Å“road show,Ã¢â‚¬Â beginning the week of Oct. 7, where theyÃ¢â‚¬â„¢ll meet with Ã¢â‚¬Å“investors first hand and tell them about the business.Ã¢â‚¬Â Many of the investors are familiar with BrinkÃ¢â‚¬â„¢s. For those who arenÃ¢â‚¬â„¢t, Ã¢â‚¬Å“We want to get our story out there,Ã¢â‚¬Â Allen said.
Ã¢â‚¬Å“As an operating unit of BrinkÃ¢â‚¬â„¢s weÃ¢â‚¬â„¢ve always been transparent in our operations,Ã¢â‚¬Â and this helps when youÃ¢â‚¬â„¢re presenting to investors, Allen said.
Allen acknowledged that investors, dealers, sales people and employees recognize the strength and importance of the BrinkÃ¢â‚¬â„¢s brand. In September, BHS hired Landor Associates, a branding company out of San Francisco, whose long list of clients includes FedEx and P&G.
Ã¢â‚¬Å“Over the next six- to 12 months, weÃ¢â‚¬â„¢ll work with them, do a lot of research, and develop strategies for bringing out a new brand.Ã¢â‚¬Â Allen surmised that the new name would probably be piggybacked on the BHS name for a while.
What else will change? Well, BHS will have its own capital structure which will mean it will have its Ã¢â‚¬Å“own report card in the marketplace Ã¢â‚¬Â¦ thatÃ¢â‚¬â„¢s exciting to us,Ã¢â‚¬Â Allen said.
It also means adding office space, and personnel to take care of benefits, tax and treasury, investor relations, legal and other functions previously handled at BrinkÃ¢â‚¬â„¢s headquarters in Richmond, Va. Ã¢â‚¬Å“We wonÃ¢â‚¬â„¢t miss a beat on the transition,Ã¢â‚¬Â Allen said.
BHS will also have its own board. John S. Brinzo, Lawrence J. Mosner, Carl S. Sloane and Carroll R. Wetzel, Jr., will resign from the BrinkÃ¢â‚¬â„¢s board and become directors of BHS Holdings. Carl S. Sloane will serve as the non-executive chairman, and Allen will also serve on the board.
In terms of BHSÃ¢â‚¬â„¢s business mix, for some time The BrinkÃ¢â‚¬â„¢s Company CEO Michael Dan has talked about expanding BHSÃ¢â‚¬â„¢s commercial business. Roughly 60,000 BHS customers are commercial customers, accounting for about five percent of the business currently. Ã¢â‚¬Å“In the last few years, weÃ¢â‚¬â„¢ve added a lot of capability in business services, adding more products and services and a lot of dedicated business sales people and technicians,Ã¢â‚¬Â Allen said.
Ã¢â‚¬Å“We think itÃ¢â‚¬â„¢s a business that we can invest in and give a good return to our shareholders.Ã¢â‚¬Â Allen noted the commercial business Ã¢â‚¬Å“has been growing faster than our overall business.Ã¢â‚¬Â
However, BHSÃ¢â‚¬â„¢s overall growth strategy remains the same Ã¢â‚¬Å“to grow the residential business and the commercial business as well.Ã¢â‚¬Â
Therefore, on Nov. 1, Ã¢â‚¬Å“donÃ¢â‚¬â„¢t expect anything radical,Ã¢â‚¬Â Allen reiterated. Ã¢â‚¬Å“We think weÃ¢â‚¬â„¢re pretty good at what we do and weÃ¢â‚¬â„¢re just going to keep doing that. The key is everybodyÃ¢â‚¬â„¢s pretty energized about the whole thing and weÃ¢â‚¬â„¢re feeling very confident as we move ahead.Ã¢â‚¬Â