Golden Gate Acquires Pinnacle Security

Golden Gate Capital has agreed to acquire Pinnacle Security, an Orem, Utah-based provider of residential and commercial security systems. No financial terms were disclosed for the deal, which was done in partnership with company management.

 

PRESS RELEASE

Pinnacle Security, a leading provider of residential and commercial security systems, today announced that it has entered into a strategic and financial partnership with Golden Gate Capital, a San Francisco-based private equity firm. Financial details of the transaction were not disclosed.

For Pinnacle, this marks an important milestone in the companys growth, as the partnership with Golden Gate will enable the company to continue its impressive trajectory and complete its transition to a more diversified international security company.

“This transaction marks a major milestone in our history and strengthens the solid foundation of Pinnacle as we continue to pursue our growth plans,” stated Christopher B. Munday, CEO of Pinnacle. Munday, who joined Pinnacle in 2007, will be continuing as CEO of the Company.

Kelly Walker, one of Pinnacles founders, said of the transaction, We are excited to partner with Golden Gate Capital, whose vision and commitment to growth is aligned with that of Pinnacles management team.

“As a strategic investor, we focus on businesses with attractive growth potential and Pinnacle is a perfect fit, said Prescott Ashe, a Managing Director of Golden Gate Capital. Pinnacle employs a unique and highly effective method of reaching customers through direct, door-to-door selling, and provides a compelling product offering to residential customers while simultaneously providing tremendous opportunities for leadership and personal achievement for its approximately 2,000 salespeople. The companys impressive growth since its founding in 2001 reflects this combination, and by partnering with the Pinnacle management team and its salespeople, we are confident that this strong historical performance will continue.”

Roth Capital Partners acted as financial advisor and Bennett Tueller Johnson & Deere acted as legal advisor to Pinnacle and its management. Kirkland & Ellis provided legal advice to Golden Gate Capital.

About Pinnacle

Pinnacle is a leading provider of residential and commercial security systems, focused primarily on direct sales. Pinnacle has sales offices in major metropolitan areas throughout the United States and is expanding internationally. Pinnacle is headquartered in Orem, Utah, where it operates its primary operational and recruiting facility. Pinnacle was founded in 2001. For more information, please visit http://www.pinnsec.com.

About Golden Gate Capital

Golden Gate Capital is a San Francisco-based private equity investment firm with approximately $9.0 billion of capital under management. Golden Gate is dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses. The firm targets investments where there is a demonstrable opportunity to significantly enhance a companys value. The principals of Golden Gate have a long and successful history of investing with management partners across a wide range of industries and transaction types, including leveraged buyouts, recapitalizations, corporate divestitures and spin-offs, build-ups and venture stage investing.

Pinnacle Security: http://www.pinnsec.com

Golden Gate: http://www.goldengatecap.com