Tri-S to sell Cornwall Group
ATLANTA--In a conference call March 25, Tri-S chairman and CEO Ronald Farrell announced the company had signed a non-binding letter of intent to sell its Cornwall Group division, which provides guarding, investigative, video and alarm installation, and other security services, primarily in the commercial sector. The company’s Paragon business does work primarily with the government sector and has performed better recently, Farrell said, acquiring a number of large contracts.
Tri-S purchased Cornwall in 2005 for $13.5 million, plus the assumption of roughly $2 million in debt.
“The sale of Cornwall will substantially reduce our debt to our senior lender,” Farrell said, “and, in turn, hopefully as a result of this and some other financing, will allow us to get away form the over-advance charges and other fees that we have incurred, which will have a very positive impact on our numbers going forward. The savings will be about $2 million annually.”
Tri-S reported a loss, minus a goodwill charge, of $3.1 million for 2008.