ASG Security Announces Recapitalization Transaction

By Laura Stepanek, Contributing writer

Alarm Security Group, LLC (ASG Security), ranked No. 15 on the SDM 100, announced yesterday that it completed a recapitalization transaction with Parthenon Capital, a leading private equity firm based in Boston and San Francisco. The transaction received regulatory approval and was completed on October 26, 2007.

Proceeds from the transaction were used to repurchase shares held by Waud Capital and Northwest Capital Appreciation and to provide growth capital for future expansion. ASG Security’s existing management team, led by chief executive officer Joe Nuccio, will continue to lead the company. Senior management invested alongside Parthenon Capital in the transaction and will be significant shareholders in the company going forward.

Nuccio said that “In the last five years, ASG Security has grown into a premier electronic security company with leading operations in a number of regions across the country. Our goal in the next five years is to continue providing the highest level of service to our commercial and residential customers while expanding our capabilities into contiguous markets and new product areas. The investment being made by Parthenon Capital is a great opportunity for the continued growth of ASG in the markets we serve today and will facilitate our expansion into new operating regions. We are excited to have Parthenon as our strategic partner and look forward to working together to achieve our goals.”

David Ament, a partner at Parthenon Capital who is involved in the firm’s business services investments, commented, “We are very excited to have the opportunity to partner with Joe and the team at ASG Security. The electronic security market has many attractive fundamentals, but companies must have operational expertise and execution discipline to be successful. We are very impressed with ASG’s operating model and the team’s deep expertise in the market. We’re excited to be part of the company’s growth going forward."

ASG Security was represented by BarnesAssociates in the transaction. CapitalSource, ASG Security’s longstanding credit partner, arranged financing for the transaction.

ASG Security is headquartered in Beltsville, Md. The company provides security to more than 77,000 customers. For more information, visit www.asgsecurity.com

For more information about Parthenon Capital, visit www.parthenoncapital.com

Laura Stepanek is a SDM contributing writer. Laura was the Editor of SDM from 2001-2020 and first joined the publication in 1984. She holds a bachelor’s degree in English from Barat College of DePaul University.