Purchase eases access to suppression line
DURHAM, N.C. - Delta Systems increased its fire installation reach in North Carolina with its purchase of Building Technologies Alliance, a company with a presence in the Raleigh and Charlotte market and access to a major line of fire suppression products.
Delta Systems bought Building Technologies in mid-August from Acoustics Inc., an interior contractor for floors. The company determined after several years of owning BTA that the systems business was not central to its future. The purchase price was not released.
For BTA, becoming part of a company focused on the security and life safety market provides it with additional resources in the security market, namely an in-depth security line and access to intrusion detection products, said Bruce Bowman, former vice president of BTA.
Ã¢â‚¬Å“ThereÃ¢â‚¬â„¢s now a solid vision for the future,Ã¢â‚¬Â said Bowman, institutional sales manager for Delta Systems, who along with 20 other people joined Delta Systems.
Delta Systems, on the other hand, gains access to the Fenwal line of waterless fire suppression systems, a product that BTA is certified to install. Delta Systems is now training its installers on the system, with plans to have 15 people fully competent with the productÃ¢â‚¬â„¢s features within a year.
Peter Wright, chief executive officer of Delta Systems, said the acquisition is part of plans to build a regional systems integrator that offers both security and fire systems. Approximately 60 percent of the companyÃ¢â‚¬â„¢s business comes from the fire installation market.
Wright expects Delta Systems will reach $10 million in revenue next year, thanks to a 50 percent increase in business in 2003 compared with 2002 and a projected 30 percent organic growth rate for next year.
Increased sales are expected to come from a combination of organic and acquisition-based growth.
According to Wright, the acquisition of BTA represents the companyÃ¢â‚¬â„¢s fourth deal in more than two years.
Last year Trinity Security, which does business as Delta Systems, secured $700,000 in funding to finance additional growth. It represented the second round of capital, minus $500,000 in seed money, for the systems integrator.
Wright started Trinity Security in 2001 with John Keesee. Their entrance into the market came in March of 2002, when they bought Action Communications, a systems integrator based here. Two other acquisitions then followed, with the purchase of Delta Systems in Columbia and Greenville, S.C., providing the company with its operating name, while the purchase of an area Edwards Systems Technology service branch strengthened its integrated building system expertise.
Wright said Delta will absorb BTAÃ¢â‚¬â„¢s office in Raleigh, but keep its location in Charlotte. He said BTA has also adopted the Delta Systems name.