LANCASTER, Pa.—Just one month after securing a $55 million credit facility with Goldman Sachs, Select Security, a super-regional security company based here, has acquired 5 Star Security, a Bluemont, Va.-based high-end residential company.
“This is Select Security’s first entrance into Virginia, which we feel is a very good market, and it follows our model of being a major provider in smaller markets,” Patrick Egan, Select Security’s founder and CEO, told Security Systems News.
Egan noted that he has targeted some additional acquisitions in Virginia and is confident Select will have a Northern Virginia office by the end of the year.
“Now that we have crossed the Mason-Dixon line, we are going to be an aggressive acquirer, and we are sending a message to Northern Virginia dealers that we are interested and we’re growing,” he said.
The complete fold-in does not include an office or employees. Additional terms of the transaction were not disclosed. Steve Rubin of Davis Mergers and Acquisitions Group represented 5 Star Security in this deal.
“Lenny Bianchi [5 Star’s president] had a very nice account base—between 1,500-2,000 mostly high-end residential accounts—that he has taken good care of for more than 20 years, and he wanted to retire, so this is a perfect acquisition for us,” said Egan. “And he is a DMP dealer, like us, who has built a reputation of great service to his customers, so the company fits very nicely.”
Founded in 2003, Select Security has multiple local offices serving more than 25,000 customers across Pennsylvania, Ohio, Maryland, Virginia, Kentucky and West Virginia.
In addition to this deal, Egan noted that Select recently closed on soon-to-be-announced additional acquisitions, with more on the way.
“We are just getting started,” he said.Topic: Residential Tags: Select Security, Patrick Egan, 5 Star Security