Insiders & investors buy out Pinnacle
OREM, Utah--Pinnacle Security, a provider of residential and commercial security systems that has found success with a door-to-door sales model since its founding in 2001, has been acquired by its management team and Golden Gate Capital, a San Francisco-based private equity company.
Terms of the deal were not released as part of the early June announcement, but Steve Hafen, Pinnacle chief operating officer, said Pinnacle will use the capital infusion to fuel growth, including expansion beyond its current footprint in the United States and Canada. Ã¢â‚¬Å“WeÃ¢â‚¬â„¢re not sure where yet,Ã¢â‚¬Â Hafen said, Ã¢â‚¬Å“but I think thereÃ¢â‚¬â„¢s opportunity in Europe, thereÃ¢â‚¬â„¢s certainly opportunity in Asia.Ã¢â‚¬Â
Hafen said Golden Gate was an attractive financial partner because of its size-Ã¢â‚¬Å“theyÃ¢â‚¬â„¢re a multi-billion dollar fundÃ¢â‚¬Â-but also because Ã¢â‚¬Å“they have several investments in the door-to-door market,Ã¢â‚¬Â including Herbal Life, a diet product maker. He said Pinnacle does have some similarities with other door-to-door marketers, and Ã¢â‚¬Å“there are synergies and opportunities that existÃ¢â‚¬Â with those companies. However, Pinnacle is also looking to diversify its sales model into other forms of marketing and lead generation.
Otherwise, Pinnacle will use the funds raised to simply continue what itÃ¢â‚¬â„¢s been doing, Ã¢â‚¬Å“looking at demographic data, cost of living data, and determining where the door-to-door model is most effective,Ã¢â‚¬Â so as to add to its 70 current sales offices and 2,000 salespeople, said Hafen.