Select Security closes $8m facility, seeks acquisitions
LANCASTER, Pa.--Select Security president Pat Egan told Security Systems News on Aug. 26 that he decided to announce the closing of an $8 million credit facility so that sellers know heÃ¢â‚¬â„¢s in the market.
Ã¢â‚¬Å“ItÃ¢â‚¬â„¢s a small deal, the beginning of a larger facility,Ã¢â‚¬Â he said. Ã¢â‚¬Å“We want to let people in the Mid-Atlantic region know that we are an active buyer in this marketplace,Ã¢â‚¬Â he said.
The housing downturn has been especially tough on the smaller dealer, he said, and many of those dealers whoÃ¢â‚¬â„¢ve been contemplating a sale may decide to sell sooner rather than later.
Ã¢â‚¬Å“There are a lot of different reasons why people decide to sell: the break-up of a partnership, they want to retire or theyÃ¢â‚¬â„¢re just tired,Ã¢â‚¬Â Egan said.
Sales may also be propelled by the fact that the capital gains tax is currently low, and thatÃ¢â‚¬â„¢s a tax that may increase with a change in administrations, Egan said.
EganÃ¢â‚¬â„¢s footprint is currently Pennsylvania, but heÃ¢â‚¬â„¢s now looking outside of the Commonwealth, targeting Maryland, West Virginia and Virginia. His niche is as a Ã¢â‚¬Å“major provider in small markets Ã¢â‚¬Â¦ you wonÃ¢â‚¬â„¢t see us in Baltimore or Philly, but you will see us in the Ã¢â‚¬â„¢burbs,Ã¢â‚¬Â he said.
The credit facility is with Bank of America in Chicago (for more details, search Ã¢â‚¬Å“BoA renews LaSalleÃ¢â‚¬â„¢s commitment to securityÃ¢â‚¬Â at www.securitysystemsnews.com). Egan said Bank of America is normally known for making very large loans, but they will make Ã¢â‚¬Å“smaller deals if it makes sense for them.Ã¢â‚¬Â For those seeking credit, he said Ã¢â‚¬Å“the covenants are a little different Ã¢â‚¬Â¦ you really have to have your house in order to get the deal done.Ã¢â‚¬Â