IR enters the integrator market with ETC buy
DOVERÃ‚Â PLAINS, N.Y.- Ingersoll-Rand has long been known for making locking systems, but it will now build its name as a systems integrator with its recent purchase of Electronic Technologies Corp.
The deal marks the first acquisition of a systems integrator in the U.S. for Ingersoll-Rand. By buying ETC, a company with $40 million in revenues in 2001, IR picks up national coverageÃ‚Â withÃ‚Â 33Ã‚Â installation offices throughout the country. The purchase price was not released.
"We have integration companies in Europe," said Jim Scott, president of the IR Security and Safety Solutions Group. "This is an extension of our strategy to have technology integrators to provide our customers with complete solutions."
That strategy also includes IR's philosophy to do more than just provide equipment to its customers, said Eli Lustgarten, managing director of research for investment firm H.C. Wainwright & Co. in New York.
"This is probably a good platform to further enhance their ability to sell systems and probably provide aftermarket services," said Lustgarten.
Now with ETC under its wing it will likely mean IR tapping into the systems integrator to both install and service its products on large scale projects, such as hospital and universities.
As of press time the scope of the relationship had yet to be completely worked out, said Scott Deininger, senior vice president of operations. But Deininger anticipates ETC will be able to tap into IR's financial strength.
"We are going to be able to capitalize not only on IR's resources, but we're also going to capitalize on their name," he said.
Deininger said the plan is to grow ETC up to 100 locations. The company's founder and chief executive officer, Jim Muncey, will also remain with the company.
ETC will become part of IR's Security and Safety Sector's Solutions business unit, of which its European security installation and service company Interflex is also a part.
Scott said IR may consider other acquisitions in the systems integration market in the future. "Ingersoll-Rand really has a desire, particularly in the sectors we serve, security and safety, to serve our customers," he said. "We will grow in our ability to serve them in product and system delivery."