Stanley packs a one, two punch
NEW BRITAIN, Conn. - The Stanley Works has stepped forward with its first acquisitions since releasing the details of its security business plan in late September.
The company entered into a definitive agreement to acquire Security Group - an organization comprised of two primary companies,Ã‚Â SargentÃ‚Â & Greenleaf and The Safemasters Co. - and Cal-Dor Specialties, a security product and service provider, for $56 million.
According to Philip Bradney, chief operating officer with Stanley Security Solutions, the Security Group transaction expands StanleyÃ¢â‚¬â„¢s current product offerings and security solutions and assists with the companyÃ¢â‚¬â„¢s goals to grow the security division to between $2 billion and $3 billion over the next three to five years.
Safemasters, an access control distributor and installer in Silver Spring, Md., allows Stanley to further increase its service area from Washington D.C. to Boston, where it accounts for multiple offices. The company also has a strong presence serving the federal government, a market that is important for Stanley to increase its penetration in.
Ã¢â‚¬Å“Something we havenÃ¢â‚¬â„¢t been strong in is servicing the federal government,Ã¢â‚¬Â Bradney said.
Sargent & Greenleaf, a manufacturer of medium- and high-security locks and locking systems, comes aboard with strong financial services background. It adds to the financial institution presence Stanley brought to its portfolio when it purchased Frisco Bay Industries - a systems integrator known for providing security services to banks - earlier this year.
Bill Dempsey, president and chief operating officer at Sargent & Greenleaf, said it is a positive move for the company to be acquired by Stanley.
Ã¢â‚¬Å“When you are a privately held company, you have a whole different set of priorities,Ã¢â‚¬Â Dempsey said. Ã¢â‚¬Å“Now when you turn around owned by a major company like Stanley, available resources are greater.Ã¢â‚¬Â
The former owners of the company, Dempsey said, Ã¢â‚¬Å“were terrific for the business,Ã¢â‚¬Â but the time had come for them to divest their interest.
The transaction was expected to close around the end of last year, and although no decisions have been made in regards to changes at either organization, Dempsey said it is going to be business as usual for the 155-employee firm, which secures 35 percent of its business through international work.
Ã¢â‚¬Å“It just gives us a lot more feet on the ground to help our sales effort in the market.Ã¢â‚¬Â
Bradney said Stanley will continue to look for strategic acquisitions to increase its base in the security sector.
Ã¢â‚¬Å“Our strategy is to solidify our position or get us into a segment we need more influence in,Ã¢â‚¬Â he said.
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