How will Stanley change Niscayah in North America?
Stanley Black and Decker announced Friday night that all systems were go--it’d “satisfied all conditions” for its $1.2b cash bid for Niscayah.
Stanley says it now has 94.9 percent of Niscayah’s outstanding shares (as the result of shares tendered in the offer and shares acquired outside of the offer). The settlement is supposed to start on Sept. 9., but Stanley has extended the acceptance period to Sept. 23 for shareholders who have not yet submitted their acceptance.
What’s next? I’ve got calls into Stanley and Niscayah, but haven’t heard back from Stanley yet. I’m wondering if Stanley’s going to want to wait until ASIS to talk about this acquisition – (and its $61m. acquisition of Microtec in Canada, which is scheduled to close shortly).
I had an interesting email conversation with Dennis Raefield about the deal, part of which he’s allowed me to share here. Dennis, the former CEO of Mace, has a connection to Niscayah.
Raefield ran an integration firm called Omega Corporate Security for about 20 years, which he sold to Pinkerton in 1995. The idea, he said, was to start one of the first national systems integrators. Dennis served as president of Pinkerton Systems Integration from 1995-1998. “We acquired eight of the best regional integrators and PSI thrived. Later, after I moved on, PSI took a setback before the whole of Pinkerton was sold to Securitas.”
Raefield said that “under Marty Guay’s [Niscayah president] excellent leadership, Securitas Systems rebuilt the brand name and gained market share again. He built a great brand and a great team. I never understood why Securitas let that division break off as Niscayah, but it turned out to be a good move for the Niscayah owners, and obviously Securitas re-thought their decision when they made a competing bid.”
Raefield predicted that the integration of Niscayah into Stanley “will certainly be tough, with conflicting cultures and overlapping regional offices.” Raefield said the Stanley management will need “to understand the unique Niscayah culture [to] find a way to preserve the best parts. Integrations are always tough, and jobs will certainly be lost to pay for such a combination. Let’s hope the Stanley will do a better job than the many rollups that have come before them.”
Raefield noted that the concept of a quality national integrator “has become the new standard, but no matter how large they become, it will always require dedicated regional and branch offices with quality staff to maintain and grow an integration business. With minimal recurring revenue, each office must bid, install, and service new systems every month. They cannot miss a beat in execution. That has and will remain the toughest part of systems integration. They must do the tough work every day to keep loyal customers.”