Midland security firm acquired in £1.8m deal
MIDLAND-based security solutions provider CTAC has been acquired by security group Westminster in a deal worth £1.8m it was announced today.
CTAC is a specialist provider of integrated high-end security solutions with a blue chip client base including Brinks, DeBeers LV and Seven Trent Water.
AIM-listed Westminster supplies system solutions and products to the security, defence, fire protection and safety markets worldwide.
One of CTAC’s key strengths is its 24-hour Alarm Receiving Centre (ARC), which is built, operated and certificated to the National Security Inspectorate (NSI) Gold standard, the highest level of such certification in the UK.
The ARC operates as a 24/7 control and command centre and monitors alarm and video signals from more than 1,000 systems across the UK, producing a strong recurring revenue stream.
Founded in 2004, the company operates from 3,000sq ft premises in Kidderminster, supporting clients primarily within the UK but with a growing interest and significant market potential internationally.
Westminster has built a considerable global presence operating through established agents in 45 countries, offering a niche portfolio of security, defence, fire and safety products and services. The addition of CTAC continues the group’s expansion through the integration of complementary services.
Synergy benefits include: a niche business which is in sector and a good fit with Westminster’s core business; the 24-hour control centre enhances service operations presenting cross selling opportunities to other group companies, together with opportunities to add new services such as 24-hour travel advice, emergency medical & hostile extraction services to overseas travellers and third party remote monitoring & call centre services.
The net assets of CTAC at December 31, 2009 were £279,928. The pre-tax loss for the year after exceptional costs of £274,453, was £69,770 compared with a pre-tax profit for the previous year of £200,098.
Following acquisition, the vendor and managing director of CTAC, Adrian Johnson, will remain with the company as a consultant for a period of 24 months. All other staff, with one exception, will remain with the company.
Peter Fowler, Westmister chief executive, said: “The company (CTAC) is an excellent fit for our business, broadening our scope of services and offering additional synergistic opportunities to our other group companies.
“CTAC is an excellent fit with our RMS business and a clear benefit is for the two businesses to share resources and technologies as well as cross selling services.”
Mr Johnson said the deal gave CTAC an excellent opportunity for accelerated growth through Westminster’s existing client base, infrastructure and international reputation.
Elsewhere, car windscreen manufacturer Pilkington Automotive has also announced an acquisition. The company, which has a large distribution centre in Redditch, has taken over aftermarket wholesale business Glasstox in an undisclosed deal.
Glasstox operates seven sites across the UK – including Birmingham, Yorkshire and the North West, employing around 60 people.
