Select Security closes on $55m credit facility with Goldman Sachs
LANCASTER, Pa.—Select Security, a super regional security company based here, received a $55 million senior credit facility with the Goldman Sachs Specialty Lending Group.
“This deal is a stepping-stone for us,” Select Security founder and CEO Patrick Egan told Security Systems News. “We have had multiple bank deals over the years, but this new credit facility is more than two times the credit facility that we just paid off with Citizens Bank. Citizens have been wonderful to work for, but it was time for us to go to a bigger facility, which gives us a lot of expansion capabilities—a lot of dry powder as they call it.”
Securing a senior credit facility with Goldman Sachs “means that we are going to continue on our aggressive acquisition plan,” Egan explained. “We are going to have a bunch of acquisition announcements coming up that we are close to closing on, which we will be announcing in July.”
Egan noted that the credit facility will also help support Select’s new DIY program it has partnered with Mace to rollout nationwide.
“Steve Firestone [Select Security president] and I have always felt that the two most important things to launching a national product are capital and the national brand name, and we have secured both,” said Egan. “The Goldman Sachs folks are terrific to work for and it is a five-year credit facility and they have the ability within their group to increase it.”
Mark Gronowski, managing partner of Barnes Associates, a premier investment-banking firm serving the electronic security industry, led the deal.
“Barnes Associates and Mark Gronowski did a terrific deal,” said Egan. “They have done more deals in this industry than anyone else, and they have done the big ones. They put the time, effort and strategy into it and they vetted the process very well, and I would recommend them to anybody out there who is looking for a senior credit facility, particularly a big one like this.”
Select Security, founded in 2003, has quickly grown, recently reaching $1 million in RMR.
With multiple local offices covering Pennsylvania, Ohio, Kentucky and West Virginia, Select Security offers integrated security and fire alarms, video surveillance, access control, along with home security, life safety and convenient home automation systems.