Consolidated Fire Switches Sponsors

Gryphon Investors have sold Irvine, Calif.-based Consolidated Fire Protection Holdings Inc. to MX Mercury Beteiligungen GMBH, a global fire and life safety company owned by Industrial Kapital and company management. No financial terms were disclosed.

 

PRESS RELEASE

Gryphon Investors (“Gryphon“), a San Francisco-based private equity firm, announced that it has sold its portfolio company, Irvine, CA-based Consolidated Fire Protection Holdings, Inc. (“CFP“) to MX Mercury Beteiligungen GMBH (“Minimax“), a global fire and life safety company owned by European private equity firm Industrial Kapital and management. The transaction will expand the global footprint of Minimax with CFP becoming its North American platform and current management continuing to run CFP. Terms of the transaction were not disclosed.

Gryphon Investors acquired CFP, a national provider of fire and life safety services to commercial, industrial and institutional facilities throughout the U.S., in February 2005 through an exclusive alliance with Jerry Rose, former Vice-Chairman of leading real estate services firm Jones Lang LaSalle, and in partnership with Jim Didion, the former Chairman and Chief Executive Officer of leading real estate services firm CB Richard Ellis. Under Gryphon's ownership, CFP grew internally at a compounded annual rate of over 30%, established a market-leading national accounts business, expanded through the opening of several de novo offices and completed the acquisitions of Fire Call and Arizona Fire in 2006. In addition, Rob Salek, former head of international fire safety and security operations for market-leader Tyco, was recruited to join CFP as CEO in July 2006.

“We are proud to have helped build CFP into one of the leading fire and life safety services firms in the nation, with leadership positions in many of its markets and a best-of-breed national accounts program,” said Nick Orum, Gryphon Partner and head of its Business Services Group. “We are delighted that this sale will result in attractive returns for Gryphon and its partners and allow CFP and its management team to join forces with Minimax, one of the leading global fire and life safety firms.” David Andrews, Gryphon Managing Partner, added, “CEO Rob Salek, President Keith Fielding and their team are the best in the business. They have been terrific partners and we expect CFP to continue to thrive under their leadership going forward.”

Rob Salek, CEO of CFP said, “Gryphon has been an excellent, collaborative partner and was great to work with. Their financial and operational support enabled us to pursue initiatives that led to accelerated growth.“ He added, “We are very excited about the opportunity to join forces with Minimax as we continue to build CFP into the premier fire and life safety company in the U.S. Minimax's global presence and deep resources will allow CFP to accelerate its growth through acquisitions and on an organic basis.“

William Blair acted as the external financial advisor and Kirkland & Ellis acted as legal advisor to CFP and Gryphon Investors.

About Consolidated Fire Protection, Inc.

CFP, based in Irvine, California, is the largest independently-owned fire and life safety services company in the United States. The company's Cosco and Firetrol subsidiaries operate separately in markets across the western United States, offering design, installation, inspection, repair and service of fire safety systems to protect life and property for commercial, industrial, and institutional customers. Visit www.cfpfire.com.

About Gryphon Investors

Based in San Francisco, Gryphon Investors focuses on leveraged acquisitions of and growth investments in middle market companies in partnership with experienced management. With approximately $900 million of equity capital under management, Gryphon typically seeks to invest $25 to $75 million of its own capital in companies with sales ranging from $25 to $250 million. Gryphon prioritizes investment opportunities where it can form proactive partnerships with owners and executives to build leading companies, utilizing Gryphon's capital, professional resources and significant financial and operational experience. Visit www.gryphoninvestors.com.