Initial's guard division buys N.Y. biz
NEW YORK--Initial Security, the guard counterpart to Initial Electronics, recently bought fellow guard company OCS Security in a move that strengthens its reach in the New York metropolitan market.
For Initial Security, the June deal triples the size of its business in the Northeast, according to Randal Dorn, chief executive officer and president of Initial Security's U.S. operations.
"We just see that as a thriving area," said Dorn. "New York is the mecca of corporate offices.
OCS Security has operated in the New York market since 1970, but evolved its business over the years from a private investigation firm when it added guard services. Today, the company serves 80 clients, such as the American Stock Exchange, Federal Express, and television networks ABC and CBS, employs 1,500 people and operates an office in Newark, N.J.
Jack O'Connor, president and founder of OCS Security, said he turned down numerous offers from other guard companies before deciding to join up with Initial Security.
"We've had half a dozen other companies try to merge with us or acquire us," said O'Connor, but they didn't match. O'Connor declined to release the purchase prices for his company.
This transaction, he said, provides an expanded geographic reach and the ability to provide customers with service beyond the borders New York, New Jersey and Connecticut. It also enables his company to remain intact.
Initial Security plans to retain a majority of OCS Security's employees. O'Connor expects to remain involved with the company for at least two more years. His son, Gregory O'Connor, who served as vice president, will also continue to work for OCS Security.