ADT Acquires Red Hawk, Becomes Billion Dollar Commercial Business

Author: Dan Gelinas, Published on Oct 25, 2018

With its ~7th commercial acquisition in the past year, ADT is transforming itself from a residential provider to a commercial player with now more than a billion dollars of annual commercial sales.

ADT has announced it will acquire Red Hawk Fire & Security for $317.5 million in a move which fundamentally changes the direction of the company and "accelerates its growth."

adt acquires red hawk 1

Does the acquisition make sense, given ADT's residential core? How will this purchase and ADT's continued shifting in focus affect the industry?

Inside this note we look at:

  • Financials of the Deal
  • Strategy for ADT
  • Former Acquisitions
  • Commentary from industry experts including John Brady and Peter Giacalone
  • Effect on the Industry
  • Possible Problems

**** *** ~*** ********** *********** ** *** **** ****, *** is ************ ****** **** * *********** ******** ** * ********** player **** *** **** **** * ******* ******* ** ****** commercial *****.

****** *********** **** ********** **** **** & *********** $***.* ******* ** * **** ***** ************* ******* *** direction ** *** ******* *** "*********** *** ******."

adt acquires red hawk 1

**** *** *********** **** *****, ***** ***'* *********** ****? *** will **** ******** *** ***'* ********* ******** ** ***** ****** the ********?

****** **** **** ** **** **:

  • ********** ** *** ****
  • ******** *** ***
  • ****** ************
  • ********** **** ******** ******* ********* **** ***** *** ***** *********
  • ****** ** *** ********
  • ******** ********

[***************]

Financials ** *** ****

*** ** ****** $***.* ******* *** *** ****, ***** ** expected ** ***** ** $*** ******* ** ******* *** ****:

*** *********** **** ******* ***'* ******* ******** ********* *** ***** by ******** **** ****** **** **** ********** *********** *** ****. These *** ***** **** ******** ********* ******* **** ***** *** Peter ********* *** *** *** **** ******* ** ******** ***** *** **** ***********'* ********** ***-*******.

*** *********** ** ******* ** **** ***********' *********** ** ******* ** ****.

Billion ****** **********

***********, ***, * $* ******* *******, **** *** *********** ****** the ******** ***** ** ********** ******** ******* *** *** ** 25% ** *** ***** *******, ******* *** ** *** * $1 ******* ****** ** *** ********** *****:

Commerical '******' *** ***

*** **** *** ********** **** ** * "******" ** ***** strategy ***** *******:

*** *** **** ** ** *********** ****, **** ******* ************ prior ** *** ****.

Other ************

** ******** ** *** ****, *** *** **** ********:

** ** ***** ****** **** *** **** *** **** **** in *********** **** ******:

*** ** ***'* ************ *** ****** ** ****** ** **** it **** ** ** *** **** ** ***** ** ** again, ********* ** *******.

Return *** **** ****

******** ********* *********** ********** ****************** ******************** *************** **** **** ***** *** ***********.

***** **** *** ******** ** *** **** *** * "************" of **** *** *** ****** **** ***** **** ****:

**’* * ************ ** **** **** ******* ** ** *** minute *** **** **** ****** *** ****. **** *** ***** itself *** *** **** *** *********** ********, **** *** * hiatus **** **** ******’* ** ** *** ********** ***. ** Tim [*****] *** *** **** *********** ******* ** ****** **** the ***** ********** ** **** ** **** *****. **** ****** had * *** ******** ******* ********. ****’** **** ******* **** to ****** *** ********** *******, *** *** **** ** * phenomenal *********** ** *** **** **** ****.

********* ******, ****** *** ******** *** *** * ********:

**** ***’* *** ******* ** ********** *** ****, **** ********* to **** ** ****** **** **** **********. **** ***’* ****** breaking ****. **** ** *** **** **** ** *** ****. I *** ******* *** ********* **** **** ** ******. ** makes ***** ***** ** ****. **** **** ** ****** ***** footprint *** *** **** ** * *********** ********** **********. ********** is ***** *** ** **** *** **’* ***** **** **** to ** **** **. **** ** ********* ****—****** ** *** Red **** ** ****** ****—*** ***** ** ******. **’* * very ***** **** *** ***. * ***** ****’** ***** * good ***. ***** ***** ****’* ********* ****, *** * ***** Tim [*****] *** **** * **** ***. * ***** **** is * **** ****** **** *** **** **** **** *** to ** ** ***** **** **** ** ***** * ****** commercial ********.

***** **** ****** *** **** ** ** ********** ** *** that *** **** ** * ****** ********** **** **********:

**** ** * ****** *** **** **** ************ **** ****’** been ****** ** ** * ****** ****** **** **** ***** have ****, *********. ** *****’* **** **** **’* * **** based *******, ***. **** *** ** ******, **’* **********, **'* got *** *** ****** **. *** *** *******, *** *** tests *** ***********. *** **** *** **** ****** **** ****** the ******* **** **.

*** ** **** *** ******** ** ********* *** **** **** yield ****-**** ********* ********:

Effect ** *** ********

*** **** *** ** * **** ********** ****** ** **** the *********** *** ********** **** *** ******** ******, ********* ** Brady:

*** ****’** **** *** **** ** * *********** ******.

***** ******* ** *** ******** *** ******* * **** *** to*** ****'* ********** ******,********** **********. *** ** *** ****'* ********--********* ** ~**,***--*** ********* ********* at **********. ** *** ** ******* **** **** **** *** move ** ***. ******* **** **** **** ********** *** ******* 500-800 ******** ********* ********.

Possible ********

***** *** ********* ******* ** ***** **** ***** *** *********** is * **** ****, **** *********** *************** *********:

(*) *** ****** ***** ** ******* *** ******* *********** ***** monitoring **********. ** *********** ************ **** **** ***********, **** **** make ** **** ********* ** ******* ** **** ****** **** differing **********, *.*., *********** ** **********.

(*) *** ** ********* ********* ** * ***** (********** ***********) with ****** ********** *** ****** ********** ************ **** ***** ********** core (***********). ****, ******* ** ****-*******, ***** ** ** **** plan *** **** *** ** * ******** ********** ********** ********. It ***** **** ** * *********** **** **** **** ****** solve *** *********** ****** ** **** **** ********* **** * historically *********** ****** *****.

(*) *********** *** ***** ******* *********** (********* *** **** *** has ******** ******** *********** ****** ** *** **** * *****) will ** *********** ** **** **** ******* *******, ********, ********* methods, ***.

Vote / ****

Comments (16)

******* *** ******** ** *** *** *** ******** ** *** owners ** **** ***** ** *** **** ** *****

*** ******** *** ****** ***** ** * ***** ****** ********

*****.

*********** ** * ***** *** ***. *** **** *** ******** their ***** *********** ** * *** ** ***** ****** *** large ********** ********, *** ********* ****** *** ******** **** **** they're ***** ****** **** ** ******** ***** *** ******* **********, poor ******* ******* *** ***** ******** *******. *** *********** *** Red **** ********** ********, ******* *********, *** *********** ***** **** things **** ************* *** ***, *******, ** ******.

*********** ** * ***** *** ***.

** *** ***** **** ** **% ** ***** ******** *** what **** *** #* ** *** ****** *** ** * loser? * ** *** **** ****** * ******** *** ****'* a ****** ****** ******** ** ** **.

** *** **** *** ******** ****** ** * ***** ******, you’d ************ ****** **** * **** ********** ****** ***.

*** *** **** *** ********* **** **** **** * '***** sector'? :)

* ***** **** ** **** **** ********** *********** ** ***** the *********** **** **** ** **. **'* **** * *** from **** * *** ***** *** ***** *** ***** *** money *** ** *********** *********.

*** *** **** *** ********* **** **** **** * '***** sector'? :)

***, ******** ***'* *********** *******.

** ** **** *** ******* ** ***** ********** ************* ******* their *** *** *** **** ********* **** ****** *** ****** slim. * *** *** **** ** ***** *** ******** ***** any ** *** ******** **** *** ******* *** ****** ** our ********** *********. ** ***** **** ***** ** ********* **** a **** ********** ******** *** **** ***** **** ** *** ADT *** *** ************ ******* ** *** *** ****? ********** as * ****** ******* ** ***** ** **** ** ******** investors *** ***** ******* ** ******* ********** ********* ********.

** ******* *** *** ** ***** ******* ** ***/****** ********** documents **** *** ******* ***. **** *** *** **** ***** the *** **** ** ******** “************” ** ******** ** ***** “deterrent” ******** ***** ********* (****, ** ****** ********). ****** ***********. Much ********* *** ********** ********. ** * **** ** ****-*** commercial “*********” *********, *** **** **** ***** ******* ***** **** sense (****** ******** ****** ********). ***, *** ***** ***** ** a ********** ******, *** ***** **** ******* ***** ******* *** pickup, ***** ***** **** ***** ***** **** ****** ******.

******: *** *****; ******* ******** *****

***,

**** ******* ** * *** ********* **** * *** ** assertions *** ** **** ** ********. *'* *** ****** ***'** wrong ***, ** ***** ** *********** ** **** *** *********.

*** ** *** "**" **** ******** *** *** ** "*****" looking **** *** ***/****** ***********...***, ** *** **** *** ******* for **** ******?

** *** **** *** ******* *** *** "****, ** ****** response" *******?

***** ***!

***, *** ******* *** ** **** ******* ** *** ********** space ** **********?

**** ***** / ********.

*** *** ********** *** *** ***** *** **** ****. ** Gopher *** ***...

*** ** *** ***********, ***, *** ** *** * ****** big ********** **********. *******:********** ************ ********* ********** ******

******* * ********** ******** **** **** * *********** ****** ** their ******* ***** *** ****** ******* ******* **** **** **** are ********** **. **** **** **** ** **** ** *** debt ** ******* *** *********** ***** ** ** ******* *** fund *** ****** ** *********, *** *** **. **** **** also ***** ***** **% **** *** *** ** ***** *** separate **********. ** **** ** *********** *** **** **** **** this ** ***** **** ********* *******.

***** *** ******* ***** ******* ** ***** ****** -**% ** sales. *** ***** ***** ** ******* ** *** *** **** business ***** ****** ****** ** ********* **** **** ********* (******** staff ********** ******** ** ********** **** **** ****/***). **** ****** hold *** ************ *** ********** ******** ***** **** ******* **** acquisition.

**** **** ***** ********* ***** ***** **** ********** ***** *** GP ******** **** ***** **** *********** ********?

*** **** *** **** *** ** *** ******* *** ****** to ****** **** ***********?

*** ***** **** ** ****** ******* **************, ***. ** ******* ****** **** **************.

***** ***, ****.

******* ** *** ****** ******** ** *** *********** ********** ** Q1 ** ****...

****** ** **** ($***) */ * *** ****** ******** ***** environment ****** ** *** *** *** **** ****** ******* ****** company...📉

*'* ********* *** *** ** ********** ** *** ***** ********** IDS *** **** ******** ****** *** ****** ******** *** ********** "acquisition" ** ***? * **** ** ******* **** *** ** team ** ******** *** ****** ******** ***** *** *** **** and ** *** **** ****** ** *** * ******** **** is ******* ***** *** *** *** ** **** *** *** has ************* ********* ********. * ** ********* ** *** ** many ************ ** **** * ***** ****** ** ****, ****'* a *** ** *********** **** *** ****! *** **** **** or *** ***** **** ************ ** *** *******?

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