Devcon bought by Golden Gate Capital

Pinnacle Security investor takes 140,000-customer Devcon private
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Thursday, October 1, 2009

HOLLYWOOD, Fla.—Devcon Security’s “soap opera of [investor and capital] challenges” ended September 30 when it was acquired by Golden Gate Capital, an investment company based in San Francisco, Security Systems News has learned from Devcon CEO and president Robert Farenhem.

“We are fortunate to have a new owner who is very enthusiastic about the business and who has the capital to support our growth strategy,” Farenhem said.

Golden Gate Capital has other investments in the security industry, notably Pinnacle Security, a summer-model company based in Orem, Utah. Devcon will operate independent of Pinnacle, however, as a separate portfolio company of Golden Gate.

Farenhem called Golden Gate “an ideal financial partner who is supportive of the [Devcon] management team.” Other than putting its financial and investor headaches behind it, the day-to-day operations of Devcon will remain largely the same, he said.

Farenhem, who has served as president for the past several years, will take on the role of CEO. His senior staff will stay on. Key members of that staff include: CFO Mark McIntosh; VP of finance Ann MacDonald; VP of HR and management development Kimberly Marcio; and Joel Cohen, president of Mutual Central Alarm, Devcon’s subsidiary in New York.

Devcon has undergone several changes over the past several years, shedding its non-security related construction businesses in 2007. More recently, it’s “encountered significant capital challenges” having to do with investors. The owner of Devcon until the Sept. 30 transaction was Royal Palm Partners of Deerfield Beach, Fla.

Devcon has $3.5 million in RMR and 140,000 customers in Florida and New York. It has a central station here in Hollywood.

Farenhem said he’s looking forward to “being able to grow the business in our existing footprint and soon, to make selected acquisitions to enhance our business.”

Check back for continuing coverage of this story, including interviews with Golden Gate Capital’s Doug Bayerd.