GTCR Partners with Former GTCR Executives to Acquire ADT's Commercial Fire and Security Segment

Rhea-AI Summary

GTCR, a leading private equity firm, has signed an agreement to acquire ADT's Commercial fire and security segment for approximately $1.6 billion. ADTC is a national provider of electronic security and fire safety services. Former P1 executives Tim Whall and Dan Bresingham will partner with GTCR for the acquisition. ADTC will become an independent company with Mr. Bresingham as CEO and Mr. Whall as an active director. The transaction is expected to close in Q4 2023.

Positive

• GTCR's acquisition strengthens ADTC's position as one of the largest providers in the industry.
• ADTC will continue to focus on delivering reliable service and innovative solutions to protect customers' people and assets.
• The transaction values ADTC at approximately $1.6 billion.
• Former P1 executives Tim Whall and Dan Bresingham will partner with GTCR for the acquisition.
• ADTC will become an independent company with Mr. Bresingham as CEO and Mr. Whall as an active director.

Negative

• None.

Firm partners with Dan Bresingham, Tim Whall and other ADT Commercial leadership to acquire national provider of electronic security and fire safety services

CHICAGO, Aug. 8, 2023 /PRNewswire/ -- GTCR, a leading private equity firm, announced today that it has signed a definitive agreement to acquire ADT's Commercial fire and security segment ("ADTC" or the "Company") from ADT Inc. ("ADT", NYSE: ADT). ADTC is among the leading national providers of electronic security and fire safety services to commercial enterprises and multi-site national accounts. ADTC was formed through ADT's 2017 merger with Protection 1 ("P1"), a prior GTCR investment. GTCR will partner with former P1 executives Tim Whall and Dan Bresingham to acquire ADTC in a transaction that values the business at approximately $1.6 billion. Mr. Bresingham, current leader of ADT Commercial, will become CEO of the standalone business upon close. Mr. Whall will join the Company's Board at close and serve as an active director. Mr. Whall brings over 30 years of experience in the security industry and this will mark his fourth partnership with GTCR in the security space.

Headquartered in Irving, TX, ADTC is a leading provider of the installation, monitoring and ongoing service of commercial security, fire, and life safety solutions. ADTC has built a robust national footprint with more than 5,300 colleagues across over 100 locations servicing more than 300,000 customer sites. The Company solves customers' complex, mission-critical security and fire needs, leveraging its nationwide footprint along with its strong local presence.

GTCR's investment will strengthen ADTC's position as one of the largest and fastest growing providers in the space. Together, GTCR and ADTC will implement a strategy to drive continued growth and innovation, with additional capital available to help fund strategic M&A opportunities. As an independent company, ADTC will continue to focus on delivering reliable service, strong technical expertise and unique solutions to protect its customers' people and assets.  

"We are excited to again partner with Dan and Tim, as well as the incredible team at ADTC," said David Donnini, Managing Director and Head of Business & Consumer Services at GTCR. "This is a unique opportunity to invest in a successful business that we know well and helped develop, alongside partners that we have worked with for two decades. We believe making ADTC a standalone company strengthens its competitive positioning, sets up ADTC for future growth and builds upon GTCR's history of successfully transforming businesses in the sector."

ADTC will mark GTCR's fourth investment in the security and fire industry, including the acquisition of Cambridge Protection Industries ("Cambridge"), the carveout of Honeywell Security Monitoring ("HSM") and the take private of P1. Mr. Bresingham previously served as the Chief Financial Officer of HSM and P1. Mr. Whall previously served as the COO of Cambridge, the CEO of HSM and the CEO of P1.

"We have built a highly skilled team and strong platform at ADTC that is well positioned for long-term success as a standalone organization," said Mr. Bresingham. "We know that GTCR will be a great partner given our shared experience and their focus on growth while delivering exceptional service. Together, we will continue to invest in expansion, innovation and in the highest quality of customer service."

"As a firm, we have a long history of investment in the security and fire sector and have always viewed the commercial market as an attractive area for growth," said Tom Ehrhart, Principal at GTCR. "We look forward to building upon ADT Commercial's position as a premier provider of critical services and continuing to invest in its expansion and innovation."

The transaction is expected to close in the fourth quarter of 2023 subject to customary regulatory approvals.

Raymond James & Associates, Inc. and Stifel served as financial advisors to GTCR. Citi and RBC Capital Markets are acting as financial advisors to ADT. Kirkland & Ellis LLP provided legal counsel to GTCR. Cravath, Swaine & Moore LLP provided legal counsel to ADT.

About GTCR

Founded in 1980, GTCR is a leading private equity firm that pioneered The Leaders Strategy™ – finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through organic growth and strategic acquisitions. GTCR is focused on investing in transformative growth in companies in the Business & Consumer Services, Financial Services & Technology, Healthcare and Technology, Media & Telecommunications sectors. Since its inception, GTCR has invested more than $25 billion in over 270 companies, and the firm currently manages more than $35 billion in equity capital. GTCR is based in Chicago with offices in New York and West Palm Beach. For more information, please visit www.gtcr.com. Follow us on LinkedIn.

About ADT

ADT Commercial is a premier provider of commercial security, fire, and life safety life safety services in the U.S. ADTC can help manage your organization's risks with custom integrated solutions to help cover all your locations—inside and out. Our local teams will tailor your systems to meet the specific needs of each facility. You can rely on us to be your ideal partner for integrated security, fire, life safety, and guarding solutions, backed by our national strength, local knowledge, and innovative approach to help protect your people, property, and assets.

ADT Inc. is the most trusted brand in smart home and small business security. Through innovative products, partnerships, and the largest network of smart home security professionals in the United States, we empower people to connect and protect what matters most at home, work, and on the go. For more information, visit www.adt.com.

GTCR Contacts

Investor Relations
Jodi Rubenstein
312.382.2202
jodi.rubenstein@gtcr.com

Media Relations
Andrew Johnson
212.835.7042
andrew.johnson@gtcr.com

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SOURCE GTCR

FAQ

Who is acquiring ADT's Commercial fire and security segment?

GTCR, a leading private equity firm, is acquiring ADT's Commercial fire and security segment.

What is the value of the acquisition?

The acquisition values ADT's Commercial fire and security segment at approximately $1.6 billion.

Who will lead the standalone business after the acquisition?

Dan Bresingham, the current leader of ADT Commercial, will become the CEO of the standalone business.

Who will join the Company's Board after the acquisition?

Tim Whall, a former P1 executive, will join the Company's Board and serve as an active director.

When is the transaction expected to close?

The transaction is expected to close in the fourth quarter of 2023.