Infrastruct enters Golden Triangle with Patriot Security buy
HOUSTON--Infrastruct Security announced this week the acquisition of Patriot Security Systems, in Beaumont, Texas, thereby planting a flag in the area known as the "Golden Triangle," an area of Texas rich in petrochemical plants. This continues Infrastruct's goal, said chief executive officer Dan Weiss, of obtaining a dominant position in the regulated security market, particularly that market that must abide by the recently passed CFATS regulations, which mandates security measures at chemical facilities.
"This is something that's affecting 7,000 chemical facilities," Weiss said, "and I've never done a facility for less than half a million dollars. So say the average market rate is $.5 million to $1.5 million--that's a $3 to $7 billion market in the next three years, that we now own the corner lot on. Sixty to 70 percent of that market is right here in our backyard." Infrastruct headquarters are based here, and the company has in the last 18 months acquired Dowley Security, Monarch Security, and Kimmons Security, leaving it with offices in Phoenix; Tulsa and Oklahoma City, Okla.; Lafayette, La.; and a number of smaller locations all geared toward dominating the petrochemical vertical in the southern United States.
Weiss called his current locations "triangle one." He said the company is looking at expansion into areas including New Jersey, California, even the Middle East. "We're looking for partnerships," he said, "forward-looking potential partners who can provide us with additional manpower and capital."
Patriot Security brings 15 employees, 1,500 customers and a "nice piece of RMR," said Weiss, all of which was being monitored by a third party, but will now be brought back to Infrastruct's central station. Most important, he said, "What they're bringing is the clients that are being impacted by CFATS; that's the thing that we got into. We probably have more clients that will be impacted by CFATS than anyone in the United States."
Kent Dillow, president of Patriot Security, will remain on board as general manager of the Beaumont branch; Dillow's wife Kim will continue to run Patriot Security Ltd., a guarding operation. Weiss said he was interested in collaborating with a guard firm like Patriot, but he didn't want to own one. "They'll make a margin," he said, "when the customer pays them $10 an hour. I don't think I know how to do that."