Mace buys non-core assets
LEWISVILLE, Texas - American Building Control continued on its reorganization path, announcing in early July that it completed the sale of two non-core businesses to Mace Security.
The $5.65-million deal involved the sale of SecurityandMore, a retail consumer product operation, and Industrial Vision Source, an industrial distribution business. In March, officials at American Building Controls identified the two businesses as no longer part of its strategy.
According to Danny Mills, former president and chief executive officer of American Building Control (see related story), the sale enables the company to focus on its existing businesses. That includes MDI Security Systems, its access control business, and ABM Data Systems, a provider of alarm management software.
It also helps consolidate operations for American Building Control. MDI and ABM will share a facility in San Antonio, Texas.
Mills said the cash from the sale would be put towards future growth. Ã¢â‚¬Å“We need the cash resources to build the core business,Ã¢â‚¬Â he said.
For Mace Security, the acquisition strengthens its reach in the physical security market. The company, well-known for its Mace brand of pepper spray, entered the security market in late 2002 when it purchased a small camera manufacturer.
This deal, however, represents Mace SecurityÃ¢â‚¬â„¢ s largest acquisition to date. Prior to its acquisition of SecurityandMore and Industrial Vision Source, Mace Security reported sales of $5 million. With those two companies onboard, sales are now at an estimated $25 million a year.
Ã¢â‚¬Å“ They help us grow in the space we want to be in,Ã¢â‚¬Âsaid Lou Paolino, chief executive officer of Mace Security, a Mount Laurel, N.J., company which recently moved to a new facility in Fort Lauderdale, Fla. Ã¢â‚¬Å“This gives us an e-commerce website and a retail arm for lower-end products.Ã¢â‚¬Â
Paolino said the companyÃ¢â‚¬â„¢ s operations in Dallas and nearly 35 employees will move to a different facility within 90 days.
Mills characterized the transaction between American Building Control and Mace as one of the best he has completed. Within a few short months after announcing plans to sell its non-core businesses, American Building Control had a buyer and wrapped up the sale.
USBX Advisory Services served as the broker for American Building Control.