Home » Private Equity Firm to Acquire, Combine Tri-Ed Distribution, Northern Video Systems
Brazos Private Equity Partners LLC, a Dallas-based private investment firm, today announced the acquisition of Tri-Ed Distribution, a leading source for security systems and low-voltage products in North America, and Northern Video Systems Inc., a leading wholesale distributor of security, surveillance and network infrastructure products. Financial terms of the transactions were not disclosed.
The two companies will be combined and will operate as Tri-Northern Security Distribution Inc., under the leadership of Steve Roth, an industry veteran who has served as president and chief executive officer of Tri-Ed since 2005. The combination of the two companies establishes a dynamic sales, marketing and logistics organization.
According to a press release issued by the public relations firm for Brazos, the combined company will be one of the two largest distributors of electronic security systems and products in North America. The acquisitions are being made from Brazos Equity Fund III, which closed in September 2008 with capital commitments totaling more than $700 million.
Randall Fojtasek, co-founding partner of Brazos, said: “These transactions represent an opportunity to create a leading distribution company serving the large and growing North American electronic security market. Tri-Ed and Northern are already well-established leaders in their niches, and we look forward to working closely with the management team of the combined company as they build upon each unit’s respective strengths to deliver additional value for customers, employees, suppliers and other stakeholders.”
The combination of Northern, based in Rocklin, Calif., and Tri-Ed, based in Woodbury, N.Y., brings together two of the largest entities in security distribution, with a combined 41 sales offices and the most comprehensive offering of intrusion, video, access, fire and sound and communications solutions anywhere in the U.S. and Canada, the press release said.
“We firmly believe that this new entity will provide a more significant distribution solution for the security industry,” Roth said. “The synergies and scale of the Tri-Ed and Northern combination are substantial, and together they will provide an ever-increasing value proposition to our customers and suppliers.”
Mark Haney, president and CEO of Northern, said, “Not only will this combination better support our dealers’ needs today, but also assist with their growth into new product areas and technologies long into the future.”
Tri-Ed and Northern will retain their organizational identity, company locations and executive leadership. The senior management at both organizations will assume leadership roles, as well as equity positions, in the new entity. Roth will assume the role of chief executive officer; Mark Haney will serve as president, Pat Comunale as chief operating officer, Paul Haney as executive vice president, and Brian James and James Rothstein as senior vice presidents.
Imperial Capital initiated the transaction and served as exclusive financial advisor to Tri-Ed Distribution and as a financial advisor to Northern Video Systems.