GTCR completes $315.5M acquisition of Honeywell Security Monitoring

Thursday, July 1, 2004

July 1, 2004

CHICAGO - GTCR Golder Rauner has completed its acquisition of Honeywell Security Monitoring from Honeywell Intl. The private equity firm paid $315.5 million in cash for the Minneapolis-based commercial and residential monitoring company that also offers installation services.
Under the terms of the deal, GTCR has the right to operate the alarm-business using Honeywell’s name for at least one year. How GTCR and the management team at the new company will handle the transition away from Honeywell remains to be seen. The deal was first announced in the beginning of May.
A GTCR representative approved to comment on the deal was not available at press time.
Honeywell has now reached an end to an almost three year journey. In 2001, the company announced plans to shed its alarm business to focus more on the industrial security business. But once its plans to sell the division got underway, they had to be shelved while it dealt with General Electric’s bid to acquire the company.
“This was a fine tuning of the business,” according to Steve Goodyear, director of marketing and communications for building solutions at Honeywell. Goodyear said the company will continue to work closely with its former alarm division and remains in the integrated solutions business. “We’ve just divested ourselves of one part of the business.”
Honeywell Security Monitoring will operate as a standalone business under the GTCR umbrella. The security company has a headcount of approximately 800, more than 45 locations and nearly 120,000 commercial and residential customers in the U.S.