Magazine article Security Management

Sometimes Bigger Is Better

Magazine article Security Management

Sometimes Bigger Is Better

Article excerpt

Sensormatic Electronics Corporation has taken a bold step. The company announced on May 20 that it reached an agreement to purchase the European loss prevention business of Automated Security (Holdings) PLC and that it had agreed in principle to merge BURLE Industries Inc. into the company.

"These acquisitions are the continuation of an effort initiated eight years ago to create a full integrated loss prevention company worldwide," said Ronald G. Assaf, Sensormatic's president and CEO. "We have been systematically building up our integrated loss prevention capabilities."

Automated Security (Holdings) PLC is a multinational security alarm monitoring and loss prevention corporation headquartered in the United Kingdom. Under the terms of the agreement, Sensormatic will acquire Automated Security's loss prevention operations, comprised primarily of its electronic article surveillance (EAS) and CCTV businesses. The divisions being acquired had combined revenues of approximately $105 million for the year that ended May 31, 1991.

The purchase price for the Automated Security businesses is 150[pounds] million (approximately $265.5 million), payable by 50[pounds] million in cash and 100[pounds] million in a one-year promissory note.

Short-term financing will be used to finance the cash required at closing. The proceeds of a planned public offering of Sensormatic common stock will be used to repay most of the debt incurred in the transaction.

Included in the acquisition is Automated Security's 30 percent interest in Security Tag Systems Inc. …

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