Avante Logixx Inc. (“Avante”) is pleased to announce that it has acquired a 70% equity interest in City Wide Locksmiths Ltd. (“City Wide Locks”) pursuant to share purchase agreements dated April 1, 2016 between Avante and certain departing shareholders for an aggregate purchase price of approximately CAN$2.6 million.
Based in the Greater Toronto Area and founded in 1973, City Wide Locks provides residential and commercial locksmith services and is a distributor of decorative door hardware while operating its show room and retail outlet under the brand ‘Antique Door Hardware’.
Avante’s security operations and City Wide Locks operate with significant client overlap that makes this acquisition quite compelling. As George Rossolatos, CEO of Avante stated, “Avante anticipates numerous cross selling opportunities with City Wide Locks that are expected to significantly enhance our own product offerings. City Wide Locks hold the keyways to many thousands of Toronto homes and businesses that can only be duplicated and serviced by their locksmiths and furthermore, the majority of these clients are purchasers of security services. We think this combination is a tremendous fit. In addition, City Wide Locks’ decorative hardware business is recognized as the highest value-added provider in the GTA. Our clients all have secure lock and hardware requirements that we will now be able to address. This is consistent with our strategy of making acquisitions that are a logical extension of our own core business in the security space. This investment was made at under five times Adjusted EBITDA which we believe is a prudent deployment of Avante’s capital.”
Danny Shearer, City Wide Locks’ President and the driving force behind the business and its growth will remain with the company as its President in charge of day to day operations and as holder of a 25% equity interest. The remaining equity interests are held by family members of Mr. Shearer who will remain active in the company’s operations. Effective today, Avante entered into a shareholders’ agreement with Mr. Shearer and the other family member equity interest holders relating to the business and affairs of City Wide Locks.
Mr. Shearer who will continue spearheading City Wide Locks strategy and direction in collaboration with Avante and its management team commented on the acquisition as follows: “On behalf of City Wide Locksmiths, we are very excited to be joining the Avante group of companies. Our business was founded over 40 years ago by my late father Harold Shearer to ensure families and businesses had the ultimate level of protection in their choice of locks, keys and door hardware. He would be very proud to know that with this transaction, the brand he created is poised to grow and become further entrenched as Canada’s preeminent lock and decorative hardware business.
City Wide Locksmiths shares many customers with Avante in the high end residential and commercial markets and we intend to create cross selling programs so clients can obtain security systems, services, response, monitoring and locksmith services seamlessly only dealing with one provider. Through our decorative door hardware division, Antique Door & Hardware, we (like Avante in its high end security offerings) cater to preeminent architects, designers and builders in the high end home markets, many of which we have in common. We believe there is a great opportunity to provide better and more convenient service to these shared customers and to many new ones as a result of transaction. We look forward to this very exciting next stage in our brand’s development and growth.”
City Wide Locks generated over $5 million of revenue profitably for the calendar year ended December 31, 2015 and is immediately accretive to Avante. A dividend policy has been instituted by City Wide Locks pursuant to which it is intended that the board declare dividends quarterly to its shareholders.
Effective immediately, all Avante Security rapid response and monitored clients will become part of City Wide Locks ‘Exclusive Client Program’ and be entitled to priority service and preferential pricing on locksmith and door hardware offerings.
Avante Logixx Inc. is a Toronto based security, monitoring, system integration and technology company. Its subsidiaries, Avante Security Inc. (www.avantesecurity.com), INTO Electronics Inc., (www.intoelectronics.com), LVS Inc. (www.lvssecurity.com), and the recently acquired City Wide Locksmiths Ltd. (www.citywidelocksmith.ca) together provide best in class security systems and services for residential and commercial clients, and high-rise condominium applications, with industry leadership in designing and installing complex security systems, access control, intelligent video analytics, high-end lock services and smart home automation. Avante’s group of companies strives to be best in class in each of its verticals including an industry leading rapid alarm response offering combined with alarm system and live video analytics monitoring.