Mace Security Int. sells its Central Station to Security Partners LLC
CLEVELAND, Dec. 20, 2013 /PRNewswire/ -- Mace Security International, Inc. (Cleveland, OH) is pleased to announce the divestiture of Mace CSSS, Inc., its wholesale monitoring business (Anaheim, CA) in a sale to Security Partners LLC (Lancaster, PA). The sale reflects the Board's continued commitment to maximizing shareholder value. The sale will enhance Mace's profitability while providing significant cash proceeds. The business was deemed by the Board to be a non-core asset after a rigorous strategic review of priorities and holdings. Due to an inability to scale the business cost effectively and the business's net contribution margin loss in 2013 – the sale was logical and strategic. Mace Security International will continue to offer alarm dealers exclusive Mace programs and products through Security Partners LLC.
While precise terms of the sale are not being disclosed at this time, the Company is pleased to notify shareholders that the sale will add well in excess of $0.10 per share of working capital to the balance sheet with the vast majority of it being cash. The balance of the purchase price will be in the form of notes receivable which will be paid out over the next eighteen months, with front-loaded payments.
Significant strategic measures have been achieved in the past 2 years to position the Company for the future.
These measures include:
- Divestiture of car washes
- Divestiture of real estate
- Divestiture of wholesale monitoring business
- Resolution of regulatory (EPA suspension & potential debarment) issues
- Measures to cut excess corporate overhead which did not include marketing reductions
- Move of the entire company from a high cost, multi location structure to a single low cost facility
The sale of the Wholesale Monitoring Business will allow the Company to focus on its crown jewel, Mace branded personal defense and security products. The personal defense business is profitable, on a standalone pre-corporate overhead basis, and a substantial pipeline of new customers is being developed. With the Wholesale Monitoring Business now divested, the Company does anticipate taking a one-time restructuring charge prior to the close of the calendar year. The charge relates to further non sales and marketing corporate reductions which the Company expects will improve profitability in 2014.
CEO John J. McCann said, "I am pleased to have divested the wholesale monitoring business to Security Partners LLC as it allows us organizationally to concentrate our focus on growing and marketing our core, branded products and solutions oriented businesses which have great growth potential and strategic long term value."
Chairman of the Board Richard Barone said, "Now that the above measures have been executed management will focus on the organic growth of our core business. We are pleased that our ongoing strategic review has greatly cleaned up and clarified the business. We are committed to maximizing shareholder value."
Mace® brand (OTCPINK: MACE) is a manufacturer and provider of personal defense, safety and electronic security products for home, school, business and law enforcement use. The company provides site assessment and integrated security strategies, ranging from pepper spray devices to electronic surveillance and rapid response rescue networks. Mace® brand has been a source of non-lethal solutions since 1970. Mace® brand products are sold at www.mace.com. Contact: Garnett R. Meador, email@example.com or 440-424-5393.
SOURCE Mace Security International, Inc.