Supreme Security seeks more N.J. acquisitions
UNION, N.J.--Robert Bitton, chief executive officer of Supreme Security, said he's been making acquisitions since 1969, but a small October account acquisition is the first one he's publicized.
Why? "I like to run business under the radar," he said. "Frankly, I thought if I publicized this one, I might be able to attract others."
Supreme Security is a full-service security company that did $11 million in revenue last year and has $600,000 in RMR and 98 employees.
On Oct. 4, it acquired Maplewood N.J.-based Krueger Security Systems' book of business, which included about 250 mostly commercial accounts. "The company had been in electrical contracting and the alarm business and it wanted to divest its alarm business to concentrate on electrical contracting," Bitton said.
"One of the things that interested me was that they were within our footprint and I thought we would realize significant economies of scale," he explained.
Location will be of prime importance in future acquisitions, Bitton said. Supreme operates in the northern two-thirds of New Jersey, with a little spillover into New York and nearby Pennsylvania.
David Bitton is the son of Robert Bitton and Supreme's chief operating officer. He said Supreme would have to "increase overhead and run branch offices" if it started acquiring far-flung companies. And, since Supreme's footprint envelops 10 percent of the U.S. population with 30 million people, the Bittons don't need to look elsewhere, he noted.
Supreme's account base is 65 percent residential, but recently their new accounts have been 85 percent commercial. David Bitton said they're trying now "to improve our residential business and in order to do that, we have rejoined [Honeywell's] First Alert dealers program."
Efforts to increase the residential business will be mainly organic. Supreme's acquisition tastes, on the other hand, will be for more commercial business.
It's a good mix of commercial and residential business they're seeking, Bitton said.